Joe Smith Owns a Bookstore as a Sole Proprietor

question 110

Multiple Choice

Joe Smith owns a bookstore as a sole proprietor.He is also a partner in a hotel,which borrowed $100 000 from the bank.Which of the following statements is true?

• A)The bank can look to the assets of the bookstore to pay off the debt.
• B)Although the bank can go after Smith's personal assets,it cannot go after the assets of the bookstore because the bookstore is a separate legal entity from Smith.
• C)The bank can only go after the assets of the bookstore if Smith is the actual person who negotiated the loan with the bank.
• D)The bookstore's assets will only be available to the bank if the bookstore is operated by Smith in conjunction with the hotel.
• E)Because of the concept of limited liability,Smith can lose only what he has invested in the hotel.

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Definitions:

Environmental Variables

Factors within the environment that can influence outcomes in research or affect behaviors, health, and well-being.

Early Experiences

Childhood events and influences that shape an individual's psychological development, personality, behaviors, and perceptions of the world.

Time Spent

The duration or amount of time dedicated to an activity or task.

Ultimate Causes

Fundamental reasons or principles that explain why biological traits or behaviors evolve over time through the process of natural selection.