The Ability to Make the Life of a Business Independent

question 9

Multiple Choice

The ability to make the life of a business independent of that of the founder increases the _____ of the ownership interests, making it easier for the business to raise capital.

• A) non convertibility
• B) liquidity
• C) limitation
• D) risk

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Definitions:

Warranty

A guarantee provided by a manufacturer or seller concerning the condition of a product, often promising repair or replacement in specific circumstances.

Defect in Manufacture

A flaw or error in the manufacturing process that results in a product being unsafe or failing to meet intended standards.

Test Drive

The process of operating a vehicle under controlled conditions to evaluate its performance, reliability, or suitability before making a purchase decision.

Bind the Bargain

To make a deal or agreement legally binding, requiring all involved parties to fulfill their obligations as per the terms of the agreement.