Ahmad Owns Four Activities

question 64

Multiple Choice

Ahmad owns four activities. He participated for 120 hours in Activity A, 150 hours in Activity B, 140 hours in Activity C, and 100 hours in Activity D. Which of the following statements is correct?

• A) Activities A, B, C, and D are all significant participation activities.
• B) Activities A, B, and C are significant participation activities.
• C) Ahmad is a material participant with respect to Activities A, B, and C.
• D) Ahmad is a material participant with respect to Activities A, B, C, and D.
• E) None of the above.

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Definitions:

Competitive Firm

A business operating in a market where it has little to no influence over the price of its product or service due to competition.

Break-even Price

The price at which the total revenues of a business exactly cover its total costs, thus resulting in neither profit nor loss.

Marginal Revenue

The rise in income generated by selling an additional unit of a product or service.

Average Total Cost

The cost per unit of output, calculated by dividing the total production cost by the total quantity produced.