Ned, a College Professor, Owns a Separate Business (Not Real

question 20

Multiple Choice

Ned, a college professor, owns a separate business (not real estate) in which he participates in the current year. He has one employee who works part-time in the business.

• A) If Ned participates for 120 hours and the employee participates for 120 hours during the year, Ned does not qualify as a material participant.
• B) If Ned participates for 95 hours and the employee participates for 5 hours during the year, Ned probably does not qualify as material participant.
• C) If Ned participates for 500 hours and the employee participates for 520 hours during the year, Ned qualifies as material participant.
• D) If Ned participates for 600 hours and the employee participates for 2,000 hours during the year, Ned qualifies as a material participant.
• E) None of the above.

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Definitions:

Transnational Corporations

Large companies that operate and have assets in more than one country, promoting global economic integration.

Domestic Labor

Refers to work performed within the household, such as cleaning, cooking, and caregiving, which is often unpaid and traditionally assigned to women.

Antidemocratic Regimes

Governments or political systems that reject the principles of democracy, often limiting political pluralism, disregarding rule of law, and violating individual freedoms.

Financial Aid

Monetary assistance provided to individuals, typically students, to help cover the costs of education or other expenses.