Reference Groups Refer to

question 265

Multiple Choice

Reference groups refer to

• A) the relatively permanent, homogeneous divisions in a society that consists of people who share similar values, interests, and behaviors.
• B) individuals who exert direct or indirect social influence over others.
• C) people to whom an individual looks as a basis for self-appraisal or as a source of personal standards.
• D) those buyers who, through the size of their purchases, affect where marketing dollars will be spent.
• E) those with whom a person does not wish to be a member of or identified.

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Definitions:

Single Category Average Cost Method

A method for calculating the cost basis of mutual funds, ETFs, or stocks for tax purposes, where all shares are considered to have the same average cost.

Long-term Loss

A loss realized on the sale or exchange of a capital asset held for more than one year.

Gift Tax

A tax on the transfer of assets or money from one person to another without receiving something of equal value in return, in excess of annual and lifetime exemptions.

Section 1231

A tax provision that allows for the preferential tax treatment of gains and losses on the sale or exchange of business property and assets held for more than one year.