"Risk" in a Transactional Function Refers to

question 277

Multiple Choice

"risk" in a transactional function refers to

• A) unpredictable costs of transportation because of fuel prices.
• B) product liability from poorly produced products that become defective.
• C) the need to stock merchandise in anticipation of sales, which may become obsolete.
• D) trying new promotional campaigns.
• E) investments in new product development.

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Definitions:

Capital Loss Deduction

A tax deduction that allows individuals to offset their capital gains with any losses they incurred on investments in a given tax year.

Carryover

Unused tax credits or deductions that can be applied to future tax years to reduce tax liability.

Short-term Loss

A loss realized on the sale or exchange of an asset held for one year or less.

Long-term Loss

The loss realized from the sale of an asset held for more than one year, which can offset long-term gains for tax purposes.