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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:

Nonpersonal Presentation

The presentation of products or services through mass media channels, such as advertising, where direct interaction with the consumer is not involved.

Direct Cost

Expenses that can be directly traced to the production of a specific good or service, such as raw materials and labor.

Public Service Announcement

A message disseminated without charge with the objective of educating or informing the public about a societal issue.

Nonprofit Organizations

Organizations that exist for educational or charitable reasons, and from which its shareholders or trustees do not benefit financially.