Afton Wants to Go into Business as Boom! to Make

question 45

Multiple Choice

Afton wants to go into business as Boom! to make and market fireworks. When deciding which form of business organization would be most appropriate, Afton would normally take into account all of the following except

• A)the liability of the owners.
• B)the forms of competitors' business organizations.
• C)tax considerations.
• D)the need for capital.

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Definitions:

Bargained-for Exchange

A fundamental principle of contract law that involves a mutual exchange of value or promises between parties.

Enforceable Promise

A commitment in a contract that is legally binding and can be upheld in court.

Substituted Contract

An agreement made to replace a prior contract, which was agreed upon by all original parties and extinguishes the obligations of the first agreement.

Legal Detriment

A loss or disadvantage suffered by a party who acts or refrains from acting in a legal transaction.