Lew Owns Five Activities, and He Elects Not to Group

question 73

Multiple Choice

Lew owns five activities, and he elects not to group them together as a single activity under the "appropriate economic unit" standard. During the year, he participates for 120 hours in Activity A, 150 hours in Activity B, 140 hours in Activity C, 110 hours in Activity D, and 100 hours in Activity E. Which of the following statements is correct?

• A) Activities A, B, C, D, and E are all significant participation activities.
• B) Lew is a material participant in Activities A, B, C, and D only.
• C) Lew is a material participant in Activities A, B, C, D, and E.
• D) None of the above.

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Definitions:

Research

The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.

Percent

A part or other object per hundred, used in expressing proportions, fractions, or percentages.

Closed Systems

A concept in organizational theory referring to organizations that do not interact with their environment, assuming all resources and activities are internal.

Organizations

Entities or groups of people structured to pursue collective goals while being identified as a separate entity from its members.