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:

Obscenity

Material or speech that offends current standards of decency, typically involving explicit sexual content, and is not protected by the freedom of speech.

Miranda Warnings

A requirement for police in the United States to inform suspects of their rights to silence and legal counsel before interrogation.

Separate But Equal

A doctrine that justified and upheld racial segregation, claiming that services could be separate but still equal.

Prior Restraint

A government action that prohibits speech or other expression before the speech happens, based on the anticipation of harm.