George, an Ophthalmologist, Owns a Separate Business (Not Real Estate)

question 36

Multiple Choice

George, an ophthalmologist, owns a separate business (not real estate) in which he participates.He has one employee who works part-time in the business.Which of the following statements is correct?

• A)If George participates for 500 hours and the employee participates for 520 hours during the year, George qualifies as a material participant.
• B)If George participates for 600 hours and the employee participates for 1,000 hours during the year, George qualifies as a material participant.
• C)If George participates for 120 hours and the employee participates for 120 hours during the year, George does not qualify as a material participant.
• D)If George participates for 95 hours and the employee participates for 5 hours during the year, George probably does not qualify as a material participant.
• E)None of these.

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Definitions:

Machiavelli's Political Theories

The ideas and concepts on governance and political strategy articulated by Niccolò Machiavelli, most notably in his work "The Prince," which emphasizes practicality over morality in statecraft.

Commercial Power

The capacity of a nation, organization, or group to influence others through the control of trade and economic resources.

Ottoman Empire

A historical Islamic empire founded by Osman I in approximately 1299, which at its height covered Southeast Europe, Western Asia, and North Africa.

The Prince

A political treatise by Niccolò Machiavelli, written in 1513, advising rulers on how to gain and maintain power by pragmatic and sometimes manipulative means.