Without Creating a Separate Business Organization,Reynold Starts Up,and Assumes the Financial

question 31

Multiple Choice

Without creating a separate business organization,Reynold starts up,and assumes the financial risk of,Sole Savers,a new,pre-owned auto sales enterprise. Reynold is

• A)a franchisee.
• B)a franchisor.
• C)a partner.
• D)a sole proprietor.

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Definitions:

Exercise Price

The specified price at which an option contract can be exercised, determining the buy or sell price of the asset under option.

Put Option

A Put Option is a financial contract that gives the holder the right, but not the obligation, to sell a specific quantity of an asset at a set price within a specified time.

Bondholders

Individuals or entities that hold debt securities issued by corporations or governments, entitling them to receive interest payments and the return of principal.