Laura Wants to Start a Business, but She Is Unsure

question 169

Multiple Choice

Laura wants to start a business, but she is unsure of the legal form best for her. Short of cash, she has decided to take the form that is the least expensive and most flexible in terms of decision making and implementation. Which would you recommend?

• A) Joint venture
• B) Partnership
• C) Sole proprietorship
• D) Cooperative
• E) Corporation

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Definitions:

Correlation Coefficient

The Correlation Coefficient is a numerical measure that quantifies the strength and direction of a linear relationship between two variables on a scale from -1 to 1.

Standard Deviation

A measure of the dispersion or variation in a set of values, used to quantify the degree of variation or diversity.

Equilibrium

The state in which market supply and demand balance each other, resulting in stable prices.

Company-Specific Risk

Risk that affects a particular company due to factors such as management decisions, product demand, or regulatory changes.