Fernando Does Not Cut in Line, Raises His Hand in Class

question 109

Multiple Choice

Fernando does not cut in line, raises his hand in class before talking, and stops his car at stop signs on the road. He focuses on rules that have been established by social consensus in order to control behavior and maintain the social system. Which of the following best describes Fernando's reasoning?

• A) prosocial reasoning
• B) social order reasoning
• C) social consensus reasoning
• D) social conventional reasoning

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Definitions:

Ordinary Assets

Assets that are held for sale in the ordinary course of a business or are otherwise not capital assets, including inventory and property used in a trade or business.

Inventory

Goods and materials held by a business for the purpose of sale or production.

Trade or Business

Trade or Business refers to any activity conducted for profit or livelihood, including goods and services production, buying, selling, or providing services.

Ordinary Loss

A loss incurred in the regular operation of a business or the sale of assets used in the business that can be fully deducted in the year it occurs.