Brian Wants to Start a Business That Provides Canoe and Kayak

question 73

Multiple Choice

Brian wants to start a business that provides canoe and kayak trips. He decides that it would be better to ask his brother Brad to become his partner because

• A) one person could not possibly run this type of business.
• B) Brian will receive all of the profits from the partnership.
• C) together they will be able to get more capital and credit to start the business.
• D) the business will pay less taxes than it would as a sole proprietorship.
• E) there are generally fewer control issues in a partnership than in a sole proprietorship.

Recognize the influence of civil society in the political system.

Understand the factors contributing to political democracy and its challenges.

Analyze the role of political parties, lobbies, and other political organizations in shaping policies and governance.

Understand the relationship between economic power and political influence.

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Definitions:

Monthly Compounding

The process wherein the interest earned on an investment is added to the principal sum every month, and from then on, the interest for future periods is calculated on the new total.

Effective Annual Rate

The effective annual rate is the actual return on an investment after accounting for compounding interest over a one-year period.

Nominal Annual Rate

The interest rate stated on a loan or investment agreement, not adjusted for inflation or other factors that affect real value.

Compounded Monthly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, done monthly.