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David Has Decided to Open an Auto-Detailing Business

question 63

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David has decided to open an auto-detailing business. He will pick up an automobile from the client, take it to his parents' garage, detail it, and return it to the client. If he does all of the work himself and takes no legal steps to form a special organization, which type of business organization, in effect, has he chosen?


Definitions:

Hedged Item

An asset, liability, or planned transaction exposed to price risks that are offset by using a hedging instrument.

Anticipated Transaction

A future financial operation or deal that is expected to occur.

Existing Asset

Assets that are currently in possession or use by a company, as opposed to newly acquired or disposed assets.

Firm Commitment

An agreement between a buyer and a seller wherein the seller is obligated to supply an agreed-upon amount of goods or services at a specified price.

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