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Your Friend Comes to You with a Problem

question 71

Multiple Choice

Your friend comes to you with a problem. It seems his shrimp boats aren't catching nearly as much shrimp as they used to. He can't understand why because originally he caught all the shrimp he could handle. Each year he added a new boat, and for a long time each boat caught tons of shrimp. As he added more boats, there came a time when each boat caught somewhat fewer shrimp, and now, each boat is catching a lot less shrimp. Which of the following topics might help your friend understand the source of his problem?


Definitions:

Service Business

A type of business that provides intangible products or services to consumers, as opposed to selling physical goods.

Proprietorship

A proprietorship, also known as a sole proprietorship, is a business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Legal Liability

Legal liability involves being responsible under law for a specific action or outcome, often related to damages or restitution.

Limited Liability Company

A company organization that blends the direct taxation features of a partnership or sole proprietorship with the protective limited liability characteristic of a corporation.

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