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Mini-Case For as Long as She Could Remember, Jenna Raiter's Passion

question 22

Multiple Choice

Mini-Case
For as long as she could remember, Jenna Raiter's passion was cars. As a teenager, she spent hours with her dad tinkering with the family car, learning to change the oil and making minor repairs. She got a job at a local garage while still in high school. A few years after graduating from high school and completing the auto mechanics degree at a local community college, Jenna decided she wanted to be her own boss. She quit her job, borrowed some money from her dad, and began her own repair shop, the AutoMotion Garage. Jenna's hard work gradually attracted a loyal clientele of satisfied customers. Her success has her thinking about opening garages in two other locations, but she lacks the financial resources needed for expansion. Furthermore, the success of her business is forcing Jenna to spend more time managing the business and less time doing the actual technical work she still enjoys. She wants to find business partners who can help her with management and provide additional financial resources. She has approached a couple of friends she met in high school: Al Ternator and Lew Banfilter, to see if they would like to join the business.
-When Jenna confided in Lew and Al that she too was concerned about adding additional risk, Lew suggested that they explore the possibility of one of the newest forms of business ownership, a(n) ____________, which has very flexible ownership rules and would give them more choices in how the company's earnings are taxed while still protecting all owners from high levels of risk.

Definitions:

Match-up Hypothesis

The theory suggesting that the effectiveness of an endorsement depends on the compatibility between the endorser and the product or brand being endorsed.

Star Power

The influence or attractiveness a celebrity has, which is often used in marketing and endorsements to attract customers.

Holmes on Homes

A Canadian television series featuring Mike Holmes, in which he and his team repair or remodel homes that were poorly serviced by previous contractors.

Credibility Paradox

The concept that credibility can be both a prerequisite for and an outcome of effective communication, leading to a paradoxical situation where establishing credibility is both essential and challenging.