Which of the Following Factors Absolutely Must Be Present for an Activity

question 37

Multiple Choice

Which of the following factors absolutely must be present for an activity to be considered a trade or business for tax purposes?

• A)The activity is profitable most of the time.
• B)Taxpayer has experience in the activity.
• C)Taxpayer has a mailing address and phone number for his business that is different from his personal address and phone number.
• D)Taxpayer has a profit motive for engaging in the activity.
• E)All of the above factors must be present to have a trade or business activity.

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Definitions:

Total Quality Management

A management approach focused on continuous improvement of processes in products and services, involving all members of an organization.

Core Values

Fundamental principles or beliefs that guide an individual's or organization's actions and decisions; the essence of an entity's identity.

Cultural Diversity

The existence of a variety of cultural or ethnic groups within a society, organization, or team, emphasizing the value of diverse perspectives.

Managing Activities

The process of planning, organizing, directing, and controlling resources to achieve specific goals within an organization or project.