Cal Sells "DownSize," a Weight-Reduction Program, from a Web Site

question 33

Multiple Choice

Cal sells "DownSize," a weight-reduction program, from a Web site, in competition with Eat-Less Inc.'s product "Fit 'n Trim." Eat-Less files a suit against Cal, alleging in part that he is a sole proprietor, but his enterprise should be deemed a different form of business. Cal's enter?prise should most likely be considered

• A) a corporation because DownSize is sold online.
• B) a franchisee because DownSize is sold in competition to Fit 'n Trim.
• C) a sole proprietorship because Cal is a sole proprietor.
• D) no form of business entity because Cal has no formal organization.

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Definitions:

EEG

A test that detects electrical activity in the brain using small, metal discs attached to the scalp.

Brain

The organ located within the skull that is the center of the nervous system in all vertebrates and most invertebrates, responsible for coordinating sensation, intellectual and nervous activity.

Pituitary Gland

A pea-sized gland located at the base of the brain that produces hormones regulating growth, blood pressure, and other important body functions.

Endocrine System

A network of glands in the body that secretes hormones directly into the bloodstream to regulate bodily functions.