Juan Wants to Start His Own Business

question 140

Multiple Choice

Juan wants to start his own business.He would be most likely to favour organizing his new company as a sole proprietorship if he:

• A)expects rapid growth and wants to be able to raise a large sum of money.
• B)wants to minimize the financial risk he must accept as the owner of a business.
• C)wants to make it easy to attract qualified employees.
• D)has a strong desire to be his own boss.

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Definitions:

Balance on Current Account

Refers to the difference in value between a country's exports and imports of goods, services, investment incomes, and transfers.

Capital Account Balance

A component of the balance of payments which records net changes in a country's international financial assets and liabilities, including direct investment, portfolio investment, and other investments.

U.S. Dollar

The official currency of the United States and a primary reserve currency used globally in international transactions.

Foreign Exchange

The trading of currencies on the forex market, allowing for the conversion of one currency into another.