Martha Started a Flower Shop as a Sole Proprietor

question 1

Multiple Choice

Martha started a flower shop as a sole proprietor.After 1 year,she was forced to close the shop because business was so bad.At that time,the business assets totaled $50,000,but the business liabilities totaled $125,000.Which of the following statements is true?

• A) Martha is personally liable for the additional $75,000.
• B) Martha's business creditors can collect only the $50,000 of business assets.
• C) Martha's business creditors can collect only the $50,000 now,but if Martha ever goes into business again,they can get the assets of the new business.
• D) Once Martha terminates the sole proprietorship,the business creditors cannot even get the $50,000.

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Definitions:

Tryptophan Operon

A cluster of genes in bacteria that is involved in the production of tryptophan, regulated through feedback inhibition.

Repressor

A protein that binds to specific DNA sequences, preventing or reducing the transcription of certain genes.

Allosteric Site

A region on an enzyme that is distinct from the active site and can bind regulatory molecules to change the enzyme's activity.

cAMP

Cyclic adenosine monophosphate, a second messenger important in many biological processes.