Identify the Factors That Should Be Considered in Determining Whether

question 79

Essay

Identify the factors that should be considered in determining whether a transaction is a bona fide loan or a gift.

---

Definitions:

Economic Self-Interest

is a principle suggesting that individuals act in a way that maximizes their own benefits or gains, often driving economic decisions and actions.

Economic Behavior

The actions or decisions that individuals, households, businesses, and governments make in regard to the allocation of resources.

Forgo

To give up or abstain from something. In economic terms, this often refers to the opportunity cost of choosing one option over another.