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Diane, a Successful Accountant with an Annual Income of $150,000

question 2059

Essay

Diane, a successful accountant with an annual income of $150,000, also enjoys raising and training race horses, an activity in which she spends about 10 hours per week. Over the past five years her winnings from races have amounted to $20,000. She employs neighborhood children to feed the horses but has a professional trainer who works with the horses about 5 hours per week. Discuss some of the factors that might enter into the determination of whether or not this activity is a hobby or a trade/business.


Definitions:

No-need Objection

A type of objection during sales discussions where the prospect believes they do not need the product or service being offered.

Autosuggestion

A kind of suggestion that attempts to have prospects imagine themselves using the product.

Sales Presentation

A strategic dialogue or demonstration by a salesperson to persuade a potential buyer about the benefits and features of a product or service.

Stalling Objection

A type of objection in sales where the prospect delays making a purchase decision, usually requesting more information or time to think.

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