Thom Georges Wants to Open a Store Where He Sells

question 68

Multiple Choice

Thom Georges wants to open a store where he sells nothing but antique architectural features that he can salvage from old houses being torn down to make way for progress.He has an eye for the kind of doors, windows, mantels, and so forth that decorators want, but he does not have all the funding he needs to get started.He has invited his parents to invest $40,000 in the enterprise.He has told them that if they do invest, they would have liabilities in the firm equal to but no greater than their investment.Georges is trying to get them to form a _____ with him.

• A)closely-held corporation
• B)cooperative
• C)general partnership
• D)joint venture
• E)limited partnership

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Definitions:

Sale or Return

A sales agreement that allows the buyer to return unsold goods to the seller rather than pay for them, typically used in consignment deals.

Buyer's Use

The intended or actual application of a purchased product or service by the consumer.

FOB

An abbreviation of free on board.

FAS

An abbreviation for the expression free alongside ship.