Brothers Ronnie and Jacob Are Both in College; Ronnie Is

question 93

Multiple Choice

Brothers Ronnie and Jacob are both in college; Ronnie is a senior and Jacob a sophomore. They’re both majoring in business administration and want to open a small business a few years after graduation. They understand that it’s important to gain more management experience and build good credit ratings. Ronnie wants more security in his work and would be satisfied working with an older partner until he “learns the ropes.” More than Jacob, he’d prefer a business that’s been established for a few years. Although he likes a certain degree of independence, he’s willing to follow directions and take advice. Jacob, on the other hand, wants more freedom to make his own choices and to succeed or fail on his own merits. He’s quite creative and likes to set his own rules.
-If you were a business advisor,what would you probably recommend for Ronnie?

• A)Start a business from scratch.
• B)Buy an existing business.
• C)Buy a franchise.
• D)Go into business with his brother.

Understand the concept of executory contracts and their status within contract law.

Understand the concepts and defenses related to tort law.

Differentiate between criminal law and tort law.

Identify the elements of negligence and the defenses against it.

---

Definitions:

Value Added

The increase in the value of a product or service as a result of a particular process, typically measured as the difference between the cost of inputs and the price it's sold for.

Profit-Maximizing

A strategy or point whereby a firm selects the output level at which its profits are at their highest.

Marginal Product

The additional output resulting from the use of one more unit of a production factor.

Factor Of Production

An economic term describing the inputs used in the production of goods or services to earn an income, namely labor, capital, land, and entrepreneurship.