Which of the Following Individuals Is Involved in a Trade

question 46

Multiple Choice

Which of the following individuals is involved in a trade or business?
I.Lil owns a farm near Lafayette, Indiana. She leases the property to Cal, who operates the farm for himself. Lil receives 10% of Cal's net income as part of the lease agreement but has no responsibilities for the farming operation.
II.Lorraine owns a warehouse located in Brooklyn NY. She paid $250,000 for the real estate several years ago. It is now appraised at over $1,000,000, but she still uses the building only to store her painting collection.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

---

Definitions:

Feeling Inferior

Experiencing a persistent sense of inadequacy or lacking in comparison to others, which can impact an individual's self-esteem and mental health.

Severe Family Problems

Significant and challenging issues within a family unit that may require professional intervention to resolve.

Resilient

The ability to withstand, adapt to, or recover quickly from difficult conditions or situations.

Social Comparison

The process of evaluating oneself or one’s abilities in relation to others, often leading to feelings of superiority or inferiority.