The Phase "Ordinary and Necessary" Has Been Defined to Mean

question 34

True/False

The phase "ordinary and necessary" has been defined to mean that an expense must be essential and indispensable to the conduct of a business.
A necessary expense is an expense that is helpful or conducive to the business activity.

---

Definitions:

Primary Market

The market where securities are issued for the first time, allowing corporations to raise capital from investors.

Securities

Marketable securities embodying equity in publicly-operated corporations, claims of debt owed by governments or firms through bonds, or opportunities for ownership via options.

Original Sale

The first sale of an item or property after its initial acquisition or production.

Financial Engineering

The use of mathematical techniques to solve financial problems, including designing new financial products and strategies.