Thomas Has Started a New Business Venture for Which He

question 61

Multiple Choice

Thomas has started a new business venture for which he has been using highly economical resources,such as the market research data available in public libraries,low-interest funds borrowed from national banks,and equipments hired on lease.This technique used by Thomas to overcome resource constraints in his start-up firm is best known as _____.

• A) caveat emptor
• B) moonlighting
• C) bootstrapping
• D) collective bargaining

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Definitions:

Rebate

A return of part of the original payment for some service or merchandise, serving as a discount or reduction after the purchase.

Void Contract

refers to an agreement with no legal effect from the beginning due to an illegal purpose or violation of a mandatory statute.

Voidable Contract

A legal agreement that is valid and enforceable on its face, but can be declared void by one or more of the parties for certain legal reasons.

Contract Formation

The process by which parties' agreement reaches the point where a legally binding contract is established.