Torrie Is Thinking of Starting Up a Small Business Selling

question 136

Multiple Choice

Torrie is thinking of starting up a small business selling hand-painted wine glasses.She asks her sister,Lisette,if she'd like to join her in setting up a partnership to start the business.What is one disadvantage in joining the partnership that Lisette should consider?

• A)Lisette should realize that her profits in the partnership will always be less than Torrie's profits,since Torrie had the idea to start the business.
• B)Lisette should realize that,as an owner of the business,she will be personally responsible for the debts of the business.
• C)Lisette should realize that only Torrie will be allowed to own stock in the business as the founding partner.
• D)Lisette should realize that Torrie will have complete control over the business because it was her idea.

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Taxable Income

The portion of one's income that is subject to taxation after all deductions, exemptions, and adjustments have been applied.

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The anticipated amount of profit or loss an investment is to generate over a specific time period.