A Group of Individuals Who Wish to Start a Business

question 75

Multiple Choice

A group of individuals who wish to start a business that needs considerable funds to initiate and who wish protection in the event that their business fails should

• A) form a simple proprietorship.
• B) incorporate.
• C) establish a partnership.
• D) form a complex proprietorship.
• E) establish a firm.

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Definitions:

Property Insurance

Insurance coverage that provides protection against most risks to property, such as fire, theft, and some types of weather damage.

Fair Market Value

The price that a property would sell for on the open market between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts.

Indemnity Contracts

Agreements that provide protection or security against potential loss or damage, often requiring one party to compensate the other for any loss or damage incurred.

Property Insurance Policies

Contracts that provide financial reimbursement to the owner or renter of a structure and its contents, in case of damage or theft.