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:

Academic Stability

The ability to maintain consistent academic performance and engagement over time.

Extrinsic Motivation

Motivation that is driven by external rewards such as money, fame, grades, or praise.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to increased interconnectedness and interdependence of countries.

Adolescence

The transitional developmental period between childhood and adulthood, characterized by significant physical, psychological, and social changes.