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:

Bank Failures

Occurrences when a bank is unable to meet its obligations to depositors or creditors and ceases operations, often resulting in regulators seizing the institution.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by massive unemployment and widespread poverty.

Lost Confidence

A situation where consumers or investors become pessimistic about the economic prospects, leading to reduced spending and investment.

Prime Interest Rate

The interest rate that commercial banks charge their most credit-worthy customers, often used as a benchmark for various interest rates.