Several Factors Are Used to Determine Whether an Activity Is

question 164

Multiple Choice

Several factors are used to determine whether an activity is classified as a hobby or as a business. Which of the following are factors that aid in this determination?
I.The financial status of the taxpayer
II.The expectation that the assets involved in the activity will increase in value.
III.The taxpayer's success in similar activities.
IV.The amount of personal pleasure and enjoyment that accrues to the taxpayer.
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• A)Only statements II, III, and IV are correct.
• B)Only statement III is correct.
• C)Statements I, II, and III are correct.
• D)Only statement IV is correct.
• E)Statements I, II, III, and IV are correct.

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Definitions:

Audience Effects

The impact that the presence of viewers or an audience has on an individual's performance or behavior, often leading to enhancements or impairments.

Group Polarization

A group member’s adoption of a more extreme position about an issue than she or he originally held after participating in a discussion in which other group members strongly express agreement with her or him.

Social Roles

The patterns of behavior expected of individuals in different social positions or statuses within a group or society.

Social Customs

Established patterns of behavior and traditions that are socially accepted within a specific culture or society.