Phillip Operates a Store Called Cartridge World, Which Sells Office

question 108

Multiple Choice

Phillip operates a store called Cartridge World, which sells office supplies. Phillip enjoys operating Cartridge World, especially because he has ready access to management expertise and promotional support. He was able to open Cartridge World with limited capital. However, there are disadvantages Phillip faces as well. For him, one of the biggest disadvantages is that he does not have complete control over his operation. Cartridge World is most likely a

• A) franchise.
• B) wholesaler.
• C) direct seller.
• D) direct marketer.
• E) producer.

---

Definitions:

Long-Term Liability

A financial obligation due after more than one year.

Current Liability

Short-term financial obligations that are due within one year or within a company's operational cycle, whichever is longer.

Long-Term Debt

Borrowings and financial obligations of a business or organization that are due for repayment more than one year in the future.

Discounted Note

A financial instrument, such as a promissory note, that is sold or bought at less than its face value. The discount represents the interest or fees earned by the buyer of the note.