Jed Spends 32 Hours a Week, 50 Weeks a Year

question 54

Multiple Choice

Jed spends 32 hours a week, 50 weeks a year, operating a bicycle rental store that he owns at a resort community. He also owns a music store in another city that is operated by a full-time employee. He elects not to group them together as a single activity under the "appropriate economic unit" standard. Jed spends 40 hours per year working at the music store.

• 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.

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Definitions:

Summary-of-benefits Close

A sales technique that highlights the advantages or positive outcomes of a product or service, leading to a close.

Alternative-choice Close

A sales technique where the customer is given a choice between two options, both leading to a sale, making it easier for them to make a decision without feeling pressured.

Compromise Close

A sales closing technique where the seller and buyer agree on a mutually beneficial solution to overcome any remaining objections to the sale.

Vacuum-laminating Machine

Equipment used to bond layers of materials together using vacuum pressure and adhesive, commonly in manufacturing and woodworking.