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:

Arbitrage Profit

Earnings generated by exploiting the price differences of identical or similar financial instruments on different markets or in different forms.

Oil Futures

Oil futures are contracts to buy or sell oil at a predetermined price on a specified future date, used for hedging or speculation on oil price movements.

Risk-Free Rate

The rate of return on an investment with no risk of financial loss, typically associated with government bonds.

Oil Futures

Contracts to buy or sell oil at a predetermined price on a specified future date, used as a financial instrument for hedging or speculative purposes.