Jenny Spends 32 Hours a Week, 50 Weeks a Year

question 47

Multiple Choice

Jenny spends 32 hours a week, 50 weeks a year, operating a bicycle rental store that she owns at a resort community.She also owns a music store in another city that is operated by a full-time employee.Jenny spends 140 hours per year working at the music store.She elects not to group them together as a single activity under the "appropriate economic unit" standard.

• 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 these is correct.

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Definitions:

Anarchy

A state of society without government or law, often associated with disorder due to the absence of political authority.

Monarchy

A form of government with a monarch at the head, where the position is often hereditary.

Democracy

Democracy is a form of government in which power is vested in the people, who rule either directly or through freely elected representatives, allowing for the protection of rights and participation in decision-making processes.

Autocracy

A system of government where absolute power is concentrated in the hands of a single person or a dominant authority.