Jon Owns an Apartment Building in Which He Is a Material

question 124

Multiple Choice

Jon owns an apartment building in which he is a material participant and also owns a computer consulting business. Of the 2,000 hours he spends on these activities during the year, 55% of the time is spent operating the apartment building and 45% of the time is spent in the computer consulting business.

• A) The computer consulting business is a passive activity but the apartment building is not.
• B) The apartment building is a passive activity but the computer consulting business is not.
• C) Both the apartment building and the computer consulting business are passive activities.
• D) Neither the apartment building nor the computer consulting business is a passive activity.
• E) None of the above.

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Definitions:

Managerial Competencies

The skills and abilities required by managers to perform their duties effectively, including leadership, strategic thinking, and decision-making.

Management Processes

Various administrative and operational activities involved in running an organization, including planning, organizing, leading, and controlling.

Networking

The activity of building and maintaining professional or social relationships, especially to share information and opportunities.

Spreadsheet Software

A computer application used for storage, organization, and manipulation of data in rows and columns, allowing for complex calculations, data analysis, and visual data representation.