Scenario 9-1

question 43

Multiple Choice

Scenario 9-1. Jim is interested in beginning his own small business dealing with the repair and maintenance of household appliances. He has a talent for fixing these types of appliances and has been doing so as a sideline business for several years. He has acquired some of the needed tools; however, a sizeable investment will need to be made in tools and equipment in order for him to repair the appliances that will be brought to his shop for service. He would like part of his competitive advantage to be the capability to fix all appliances, not just one type. Jim has just one small problem--a lack of funds. He comes to you for advice.
-In Scenario 9-1, Jim has two basic choices when looking for funds. They are which of the following?

• A) assets and liabilities
• B) debt and assets
• C) debt and equity
• D) equity and assets

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Definitions:

Envelope

In biology, it commonly refers to the outer coating of a virus that protects its genetic material; in other contexts, it can mean a paper cover for letters.

Stanley Prusiner

A Nobel Prize-winning scientist known for his discovery of prions, a type of protein that can cause infectious diseases in the brain.

Biological Principle

Fundamental concepts that underpin the study of biology, such as the cell theory, gene theory, evolution, homeostasis, and ecology.

Prions

Infectious agents composed solely of protein, which can cause rare but fatal neurodegenerative diseases by inducing abnormal folding of specific proteins in the brain.