For the Years 2015 Through 2019 (Inclusive)Max,a Surgeon,has Been Involved

question 57

Multiple Choice

For the years 2015 through 2019 (inclusive) Max,a surgeon,has been involved in bowling competitions.Only in 2018 and 2019 did his revenue exceed the expenses from the activity.Which statement is correct?

• A)The activity is a business.The IRS cannot prove it is a hobby.
• B)The activity is a hobby.Max cannot prove it is a business.
• C)The activity is presumed to be a business.However,the IRS may prove it is a hobby.
• D)The activity is presumed to be a hobby.However,Max may prove it is a business.

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Definitions:

Seven-Step Sales Process

A sequence of steps salespeople follow to sell a product, typically including preparation, approach, presentation, handling objections, closing, and follow-up.

Penetration Pricing

A pricing strategy that involves setting lower than normal prices for a new product or service to attract customers away from competitors.

Profitability Objectives

Common objectives included in the strategic plans of most companies.

Volume Objectives

Targets set by a business regarding the amount of product it plans to sell or produce within a specific timeframe.