Jenny Spends 32 Hours a Week, 50 Weeks a Year

question 53

Multiple Choice

Jenny spends 32 hours a week, 50 weeks a year, operating a bicycle rental store that she owns at a resort community. She also owns a music store in another city that is operated by a full-time employee. Jenny spends 140 hours per year working at the music store. She elects not to group them together as a single activity under the "appropriate economic unit" standard.

• A) Neither store is a passive activity.
• B) Both stores are passive activities.
• C) Only the bicycle rental store is a passive activity.
• D) Only the music store is a passive activity.
• E) None of the above.

---

Definitions:

State Legislation

Laws and regulations enacted by the legislative bodies of individual states, often varying significantly from one state to another within a federal system.

Actual Malice

The standard required to prove defamation against public figures, involving knowledge of falsity or reckless disregard for the truth.

Defamation Suit

A legal action brought against an individual or entity for making a false statement that causes harm to someone's reputation.

Constitutional Protections

Safeguards embedded within a constitution that protect the rights and freedoms of individuals and organizations against infringements by the government.