Which of the Following,if True,would Strengthen the Case for Nina

question 17

Multiple Choice

Which of the following,if true,would strengthen the case for Nina running the business as a sole proprietorship?

• A) Sam is experienced in dry-cleaning.
• B) Sam has a wide base of existing customer contacts.
• C) Sam is not willing to take on legal liability in the company.
• D) Nina is relatively new to the dry-cleaning business.
• E) Nina is not much of a "people person."

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Definitions:

Traveler's Checks

Preprinted, fixed-amount checks designed to allow the person signing them to make an unconditional payment to someone else as a result of having paid the issuer for this right.

Nontrade Receivables

Receivables that originate from transactions not involving the normal sale of merchandise or services, such as loans to employees or advances to suppliers.

Subsidiary Companies

Companies that are controlled by another company, known as the parent company, through ownership of more than half their voting stock or through other means.

Right of Return

A policy that allows customers to return purchased goods within a specified period if they are not satisfied.