In Order to Deduct a Portion of the Cost of a Business

question 8

Multiple Choice

In order to deduct a portion of the cost of a business meal which of the following conditions must be met?

• A)A client (not a supplier or vendor) must be present at the meal.
• B)The taxpayer or an employee must be present at the meal.
• C)The meal must occur on the taxpayer's business premises.
• D)None of these is a condition for a deduction.The taxpayer or employee must be present for a portion of the cost of the meal to be deductible.

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Definitions:

Controlling

In management, this involves monitoring performance, comparing it against goals, and implementing corrective actions to ensure achievement of objectives.

Planning

A process involving the setting of goals, developing strategies to achieve those goals, and outlining tasks and schedules to implement the strategies.

Action Orientations

An individual's or organization's propensity to take initiative, make decisions, and execute plans effectively and efficiently.

Results Oriented

An approach or mindset that focuses on achieving specific outcomes or goals, often emphasizing the end result over the process used to achieve it.