Laura Wants to Start a Business, but She Is Unsure

question 133

Multiple Choice

Laura wants to start a business, but she is unsure of the legal form best for her.Short of cash, she has decided to take the form that is the least expensive and most flexible in terms of decision making and implementation.Which would you recommend?

• A) joint venture
• B) partnership
• C) sole proprietorship
• D) cooperative
• E) corporation

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Definitions:

Actual Money Multiplier

The real-world effect of a change in the base money supply on the money supply, taking into account changes in reserves and currency holdings.

Simple Money Multiplier

Refers to the ratio indicating the maximum amount of money that banks can theoretically generate with each dollar of reserves.

Cash Withdrawals

The process of taking money out of a bank account using a debit card or bank slip.

Money Supply

The entire stock of currency and other liquid instruments circulating in a country's economy as of a particular time.