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:

Inattention

The lack of focus or concentration on a task or environment.

Low Tolerance

A minimal level of patience or ability to endure something, especially discomfort, opposing opinions, or behaviors.

Inappropriate Activity

Actions or behaviors that are not suitable or proper in a given context or situation.

Intelligence

The capacity to understand the world, think with rationality, and use resources effectively when faced with challenges.