Jeremy Is Thinking of Starting Up a Small Business Selling

question 204

Multiple Choice

Jeremy is thinking of starting up a small business selling NASCAR memorabilia.He asks his friend, Carmen, if she'd like to join him in setting up a partnership to start the business.What is one disadvantage in joining the partnership that Carmen should consider?

• A)Carmen should realize that profits in the partnership will be reduced by dividend payments to shareholders.
• B)Carmen should realize that, as an owner of the business, she will be personally responsible for the debts of the business.
• C)Carmen should realize that the profits of the business will also be taxed as dividend income, so she faces the potential for double taxation of that business income.
• D)Carmen should realize that the Jeremy will have complete control over the business because it was his idea.

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Definitions:

Sympatric Speciation

The process of speciation occurring within a shared geographic area, where reproductive isolation occurs without physical barriers.

Stabilizing Selection

A type of natural selection that favors the average individuals in a population and works against extreme phenotypes.

Positive Selection

The evolutionary process in which genetic variations that are advantageous for reproduction and survival become more common in subsequent generations.

Frequency

The rate at which a particular characteristic or phenomenon occurs within a given population or area.