Discuss Whether the Following Persons Are Currently Engaged in a Trade

question 101

Essay

Discuss whether the following persons are currently engaged in a trade or business: Darlene has expenses related to managing her portfolio of securities. The trading of the
a. securities generates most of her annual income. She generally does not hold securities long- term. She buys and sells continuously. She has no other job.
Mark incurs expenses related to investing in stocks and bonds. Mark is a Sociology professor
b. at Indiana University but spends 10-15 hours per week on his investments. Approximately 70% of Mark's annual income come from his investments as dividends and interest.
c. Paul leases real estate to Floyd's Barber Shop for a parking lot. The only expense he incurs is legal expense regarding the lease, which he renegotiates annually.
d. Mandy owns several rental apartments. She arranges for repairs and maintenance, pays for the expenses related to the properties, and handles all leasing activities.

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Definitions:

Political Frame

A viewpoint emphasizing the power dynamics, competition, and conflicting interests within organizations or in political scenarios.

External Forces

Elements outside an organization that can impact its performance and strategies, including economic trends, regulatory changes, and competitive pressures.

Transformational Change

A profound or radical change that fundamentally alters the culture, values, and operations of an organization.

Top-Down Approach

A management style or approach where decision-making and direction come from the top levels of leadership and flow downward through an organization.