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Which of the following statements does not comprise business activity? (a) Sale of old furniture by a household for a profit (b) A carpenter made furniture for its domestic use (c) Steel furniture industry (d) Domestic appliances industry


MOVIE MEDIA

MOVIE MEDIA

CA Foundation

1K+

15-Mar-21 20:04

20

Answers (8)

Best Answer

An event is considered as business activity if it seeks generation of profit, especially when performed on a regular/repetitive manner. Here, Carpenter making furniture for ' HIS ' domestic use does not comprise business activity due to the absence of motive/ability of making profit therefrom.


Denz Philip

Denz Philip

CA Inter

25

15-Mar-21 20:26

B


Sai Teja

Sai Teja

CA Foundation

12K+

15-Mar-21 20:18

B

But.. Option A in Study material 21


MOVIE MEDIA

MOVIE MEDIA

CA Foundation

1K+

15-Mar-21 20:23

But.. Option A in Study material 21

May be wrong


Sai Teja

Sai Teja

CA Foundation

12K+

15-Mar-21 20:25

An event is considered as business activity if it seeks generation of profit, especially when performed on a regular/repetitive manner. Here, Carpenter making furniture for ' HIS ' domestic use does not comprise business activity due to the absence of motive/ability of making profit therefrom.

(c) and (d) talking about industry and are business activities Sale of old furniture by household for profit fails to be qualified as business activity due to the absence of regularity/repetition of the activity, even if it is done with a motive to make profit.


Denz Philip

Denz Philip

CA Inter

25

15-Mar-21 20:39

Ok then what about (b)

(b) A carpenter made furniture for its domestic use is business as making furniture is his regular activity done for profit, but the furniture made this time is consumed for his personal use - that doesnt make it non-business activity.


sudha reddy

sudha reddy

Moderator

16-Mar-21 10:11

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