Why Did Congress Establish Favorable Treatment for 1231 Assets

question 97

Multiple Choice

Why did Congress establish favorable treatment for 1231 assets?

• A)to encourage the mobility of capital
• B)to allow a larger deduction for losses
• C)to help business owners replace assets which had declined in value
• D)All of the above.

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Definitions:

Proxy

A person who is authorized to vote the shares of another person. Also, the written authorization empowering a person to vote the shares of another person.

Ultra Vires

A Latin term meaning “beyond the powers”; in legal context, actions taken by a corporation or company officials that are beyond their legally granted corporate powers.

Quorum

That number of persons, shares represented, or officers who may lawfully transact the business of a meeting called for that purpose.

Adopting And Amending Bylaws

The procedure for creating and modifying the rules that govern the internal management of an organization, typically requiring approval by its governing body or members.