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R2 and E2 Have Been Working as Employees in the Fashion

question 69

Essay

R2 and E2 have been working as employees in the fashion industry. They are considering forming a partnership designing fashion clothing, trading under the RE2 label. Advise the individuals on the advantages and the disadvantages of forming a partnership.


Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories.

Treasury Note

Debt obligation of the federal government with original maturity between 1 and 10 years.

Dow Jones Industrial Average (DJIA)

An index that shows how 30 large, publicly-owned companies based in the United States have traded during a standard trading session in the stock market.

Dollar Price

The cost or value of a financial instrument or commodity expressed in terms of US dollars.

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