Question

Reema bought a new house recently she plans to shift there in near future therefore she is selling off her old kitchen appliances t olx has also made some profit in the process in context of the above case: will this transaction be constituted as business activity? Why or why not

Answer 1

Answer:

As Reema bought the house for a purpose, and she did not intend to do any business with house's purchase and even she had not even thought of selling the house, but due to her work she had to sell the house in which she unintentionally gains a profit.

Explanation:

This kind of transaction is known as a business transaction, but it actually cannot be considered as business, just because when there is anything which causes busyness and also helps to earn profit and sometimes may also cause loss is known as a business.