QUESTION 13 Which of the following statements is most correct a The longer a person holds a property the more likely it is that the property is held for the purpose of sale at a profit. b) The fact that a venture fails commercially does not automatically mean that the venture did not constitute a business c) A taxpayer must commit a substantial amount of capital to a venture for it to constitute a business d) A taxpayer must commit most of their time to an activity for that activity to constitute a business. e) Illegal activities can never constitute the carrying on of a business QUESTION 14 In relation to business income, which of the following statements is most correef? a) b) The proceeds from the sale of land purchased in 1986 to carry on a farming c) The value of promotional goods received by a business from their supplier will d) If a business earns an amount from an unusual or one off transaction it can e) Proceeds from the sale of shares can never be ordinary income. The proceeds from the mere realisation of an investment or an income earning property are not ordinary income business will always be ordinary income. always be ordinary income. never be ordinary income. QUESTION 15 Which of the following statements is most likely to lead to a conclusion that the taxpayer's undertaking went beyond the mere realisation of a capital asset? The land was sold simply by listing it with a local real estate agent. The taxpayer set up their own onsite office to assist with the sale of the blocks of land. a) b) c) The taxpayer developed the land to the extent necessary to get local council d) The taxpayer continued his or her normal business activities and was not e) The land was surplus to the taxpayer's needs in carrying on the taxpayer's approval and no more. directly involved in the sale of the land. business