What determines if the activity occurring is a business?

The Zoning Ordinance does not list businesses (i.e. commercial activity) as a permitted primary use in rural or residential districts; however, many accessory commercial businesses can be permitted under the residential home occupation definition or the cottage industry definition assuming the required standards dealing with the level of activity and effects on surrounding properties are adhered to.

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1. Where/when can a business be operated from a residence?
2. What determines if the activity occurring is a business?