Anja Wants to Start a Business, but She Is Unsure

question 67

Multiple Choice

Anja wants to start a business, but she is unsure of the legal form best for her. Short of cash, she has decided to take the form that is the least expensive and most flexible in terms of decision making. She is not worried about liabilities because the business is small and she's personally insured. What type of business best fits Anja's needs?

• A) joint venture
• B) partnership
• C) sole proprietorship
• D) corporation

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Definitions:

Industry Structure

The organization of and relationships between companies within a particular sector, characterized by aspects such as competition, product differentiation, and market size.

Oligopoly

A market structure characterized by a small number of firms whose decisions about pricing and output affect each other.

Market Price

The price at which a good or service is currently traded in the market, determined by supply and demand.

Few Firms

A market structure characterized by a small number of companies dominating the industry, often leading to oligopolistic competition.