Required: Discuss whether Nadia is carrying on a business (4 marks).

Nadia works as a full time accountant, but has a passion for writing and recording songs. Nadia would regularly record herself singing songs that she wrote and post them up on Youtube. Nadia would regularly spend about 12 hours a week on her songs. She uses her own amateur recording equipment, which cost her around $2000. On average, she posts one new song online every 2 weeks, and has been undertaking such activities for the past 3 years.

Nadia dreams that one day she will be a star, but currently her following is modest, and she only makes a few hundred dollars a year due to her online hits. She keeps track of which ones of her songs have the greatest following, and always responds to messages from her fans.

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