Question

Generally, for an activity to be treated as a trade or business, which of the following is required:

a. Always generate a profit
b. Regular and continuous effort designed to seek profit
c. No more than intermittent effort toward the activity
d. Organization as a corporation or partnership

Answer 1

Option B is correct one.

Regular and continuous effort designed to seek profit

Step-by-step explanation:

Trade involves the transfer of goods or services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market. An early form of trade, barter, saw the direct exchange of goods and services for other goods and services. The main goal is to earn profit.