Examlex
A firm might prefer to choose a salary system rather than a commission or piece-rate system of compensation when there are concerns about output quality.
Investor
An individual or institution that allocates capital to investments with the expectation of receiving financial returns.
Materially Participate
Regular, continuous, and substantial involvement in business operations, determining if a tax loss is passive or nonpassive.
Passive Income
Earnings derived from a rental property, limited partnership, or other enterprises in which a person is not actively involved.
At-risk
Pertains to the amount of money invested in an activity that could be lost, used in tax contexts to limit deductions.
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