Art Owns Significant Interests in a Hardware Store and a Bookstore

question 25

Multiple Choice

Art owns significant interests in a hardware store and a bookstore at a mall in Washington, D.C. He also owns a hardware store and a bookstore at a mall in San Francisco. Which of the following is not a way in which the interests may be grouped?

• A) One activity.
• B) A hardware activity and a bookstore activity.
• C) A Washington, D.C. activity and a San Francisco activity.
• D) Four separate activities.
• E) Any of the above may be the basis for grouping.

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Definitions:

Mutually Exclusive

Events or choices that cannot occur or be chosen at the same time, necessitating an either/or selection.

Financial Viability

The ability of an entity to generate sufficient income to meet operating payments, debt commitments, and, where applicable, to allow for growth, while maintaining a solid financial position.

Precludes

Prevents from happening; makes impossible.

Conflicting Investment

Investments that present opposing outcomes or decisions in a portfolio, often leading to a prioritization decision for optimal allocation.