One Attempt to Combine the Strengths of Standardization and Customization

question 62

Multiple Choice

One attempt to combine the strengths of standardization and customization of products is to deal with both issues as functions of product design. The
_______________ approach consists of developing a mostly uniform core-
Product/platform and then adding attachments that match local market needs.

• A) core-product
• B) uniform commercial code
• C) die-casting
• D) modular
• E) PRIZM

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Definitions:

Materially Participate

The level of involvement by a taxpayer in the operations of a business that is sufficient enough to qualify for tax deductions related to active participation.

At-risk Amount

The amount of money in a particular investment that can be claimed as a deduction in the event of a loss.

Passive Activities

Economic activities in which the investor does not materially participate, and which often have different tax implications, such as rental property income.

Suspended Losses

Suspended Losses are losses from passive activities that exceed passive income, which cannot currently be deducted but can be carried forward to offset future passive income.