Carl Starts Up, and Assumes the Financial Risk Of, DataWorks

question 48

Multiple Choice

Carl starts up, and assumes the financial risk of, DataWorks, a new marketing enterprise. As a sole proprietorship, the enterprise must meet legal requirements relating to

• A)none of the choices.
• B)licensing and registration.
• C)intellectual property laws.
• D)all of the choices.

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Definitions:

Chapter 11 Bankruptcies

A type of bankruptcy that involves the reorganization of a debtor's business affairs, debts, and assets.

Chapter 13

A type of bankruptcy in the United States that allows individuals with a regular income to develop a plan to repay all or part of their debts.

Bankruptcy Relief

Legal protection granted to individuals or entities that are unable to repay their debts, allowing them to restructure or eliminate obligations under the supervision of a bankruptcy court.

Chapter 7

A type of bankruptcy under U.S. law that involves liquidating a debtor's assets to repay creditors.