Question

In discussing a direct participation program with your customer, rank the following items in order of importance from most to least.

I. Tax write-offs.
II. Liquidity and marketability.
III. Potential for economic gain.
A) III, II, I.
B) III, I, II.
C) I, II, III.
D) II, III, I.

Answer 1

The most important item in a direct participation program is the potential for economic gain, followed by liquidity and marketability, and then tax write-offs.

Step-by-step explanation:

When discussing a direct participation program with a customer, the most important item is usually the potential for economic gain because this is the main reason people invest in such programs. Therefore, it is likely ranked as number one on the list. Liquidity and marketability are also important because investors want to be able to sell their investment if they need to and have it be easily tradable. Lastly, tax write-offs may be considered the least important as they are usually secondary to potential gains and liquidity.

Therefore, the correct ranking of the items from most to least important is III, II, I, which corresponds to option B.

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