Question

Suppose that Courtney purchased a parcel of land for its appreciation potential. Would her ownership in the land be considered a business or investment activity?

A) Business Activity
B) Investment Activity
C) Neither Business nor Investment
D) Both Business and Investment

Answer 1

Courtney's ownership of the parcel of land for appreciation potential would be considered an investment activity.

Step-by-step explanation:

Ownership of land can be considered either a business activity or an investment activity, depending on how the land is utilized. In the case of Courtney's purchase of the land for its appreciation potential, her ownership would be considered an investment activity.

This is because Courtney is not actively conducting any business operations on the land; she is simply holding onto it with the expectation that its value will increase over time. The land is not being used to generate income or produce goods or services, which are typically associated with a business activity.

Therefore, the correct answer is B) Investment Activity.