Manuel Owns a Mobile Pet-Grooming Business

question 44

Multiple Choice

Manuel owns a mobile pet-grooming business. Last year as he was grooming a poodle Manuel accidentally dropped the clippers, causing a gash on the poodle's back. The poodle's owner then sued Manuel for the veterinarian bills. The court determined that Manuel owed the poodle's owner $2,000. Which of the following describes the likely form of Manuel's pet-grooming business and his liability?

• A) a sole proprietorship, which means he has unlimited liability
• B) a corporation, which means he has unlimited liability
• C) a partnership, which means he has limited liability and paid only a portion of the veterinarian bills
• D) a corporation, which means he has limited liability

Identify the various models of crowdfunding and their characteristics.

Recognize the significance of the “3 Fs” in early-stage financing.

Understand the criteria and motivations of various participants in crowdfunding platforms.

Grasp the potential scale of fundraising through crowdfunding and its impact on new ventures.

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Definitions:

Underpricing

The practice of setting the initial offering price of a security, typically a stock, below its market value.

Public Issue

The offering of shares by a company to the public for the first time to raise capital.

Standby Fee

A charge paid to a lender or service provider for keeping credit or facilities available to a borrower, even if not currently used.

Overallotment Option

A provision that allows underwriters to sell investors more shares than initially planned by the issuer, typically in an Initial Public Offering (IPO).