A Busy Mom Stops at a 7-Eleven Store on the Way

question 157

Multiple Choice

A busy mom stops at a 7-Eleven store on the way home from work to purchase some bread, milk, and ice cream. What primary economic need is being satisfied by the 7-Eleven?

• A) Dependability in use
• B) Economy of purchase
• C) Efficiency in operation
• D) Convenience

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Definitions:

Service Partner

A business entity or individual that provides services to another company under a partnership or contractual agreement.

FMV

Fair Market Value, the estimated price at which an asset would change hands between a willing buyer and seller, both having reasonable knowledge and not under compulsion.

Basis

The initial value or purchase price of an asset for tax purposes, used to calculate the gain or loss on the sale of that asset.

Section 1231 Asset

Property used in a business and held for more than a year, qualifying for special tax treatment upon its sale or exchange.