John and George Have Been Talking About Going into Business

question 46

Multiple Choice

John and George have been talking about going into business together.John wants the business as an investment and has the money necessary to set it up,but wants no responsibility and little liability.On the other hand,George wants to run the business and is prepared to accept the liability that goes with it.In this case,the agreement that John and George will enter into to do business together is

• A)a shareholders agreement.
• B)a joint venture agreement.
• C)a trust agreement.
• D)a limited partnership agreement.
• E)a limited liability partnership agreement.

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Definitions:

Currency

A system of money in general use in a particular country or economic context.

Floating Rate System

A currency exchange system where the value of a currency is allowed to fluctuate according to the foreign exchange market.

International Treaty

An agreement under international law entered into by countries in written form and governed by international law.

International Monetary Fund

An international organization that aims to promote global economic stability and growth through financial assistance and advice.