Short and Shearer Are Two Friends Who Want to Begin

question 152

Multiple Choice

Short and Shearer are two friends who want to begin an entrepreneurship as business partners. They need to decide whether to start up a new business or to buy an existing business. To do this, Short and Shearer need to weigh the pros and cons of each in order to see what the best strategy for them would be. Which of the following, if true, would weaken the case for Short and Shearer's starting a new business?

• A) Starting a new business allows an entrepreneur to determine their own working hours.
• B) Starting a new business allows an entrepreneur to establish their own clientele.
• C) Starting a new business allows an entrepreneur to use their own ideas.
• D) Starting a new business gives a potential for a feeling of great accomplishment.
• E) Starting a new business involves using an untested business model.

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Definitions:

Personal Property

Assets or belongings that are not fixed to one location and can be moved, such as furniture, electronics, or vehicles.

Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA)

A law enacted in 2005 to reform bankruptcy law, making it harder to file for Chapter 7 bankruptcy and requiring a means test for eligibility.

Bankruptcy Law

The body of laws that governs the process by which individuals or entities unable to repay debts to creditors may seek relief through the division of assets among creditors or the creation of a repayment plan.

Security Agreement

A legal document that provides a lender a security interest in a specified asset or property, which serves as collateral for a loan.