Manju Iyer Asks for Your Advice in Opening a New

question 103

Multiple Choice

Manju Iyer asks for your advice in opening a new business. She plans to provide tax-related services to individuals and small-business owners in her community. Of course, she wants an attractive means of starting and operating her business with a reasonable hope of succeeding in it. What will be your advice?

• A) Start your own independent business.
• B) Form a partnership with a CPA.
• C) Consider purchasing a franchise.
• D) Forget about opening the business because it is too risky.
• E) First secure a loan from the Small Business Administration.

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Definitions:

State Charters

Legal authorization provided by a state to create an organization, such as the formation of banks or corporations under state law.

Federal Reserve System

The central banking system of the United States, responsible for setting monetary policy, including regulating interest rates and managing the country's money supply.

Nationally Chartered Banks

Financial institutions that operate under a charter granted by the federal government, allowing them to provide banking services across the nation.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts, which can affect inflation and economic growth.