John is material participant in the ownership of an apartment building and also owns a computer consulting business. He spends a total of 2,000 hours during the year on these activities. John spends 53% of the time operating the apartment building and the remainder of his time is spent in the computer consulting business.

a. The computer consulting business is a passive activity but the apartment building is not.
b. The apartment building is a passive activity but the computer consulting business is not.
c. Both the apartment building and the computer consulting business are passive activities.
d. Neither the apartment building nor the computer consulting business is a passive activity.

Ancho corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel- based cars. the company realizes that more of its potential customers are switching to electric cars. the r& d department of the company acquires competencies in developing electric cars and launches its first hybrid car, which uses both gas and electricity. in this scenario, ancho is primarilya. leveraging new core competencies to improve current market position. b. redeploying existing core competencies to compete in future markets. c. unlearning existing core competencies to create and compete in markets of the future. d. building new core competencies to protect and extend current market position