Joe, who owned a gym in Washington, had made an initial investment of $150,000. He employed a number of people and made money for the first two years. However, the business started declining after he relocated to a different neighborhood. Joe ran up a debt of $500,000. What might happen if his creditors seek to foreclose on the debt?
a. Joe's financial risk is limited to the extent of his investment in the business.
b. Joe's personal assets can be taken by the creditors to repay the debt.
c. Joe's employees are liable to contribute a percentage of their earnings toward paying the debt.
d. The creditors cannot force the payment of the debt for five years.
Answer : b. Joe's personal assets can be taken by the creditors to repay the debt.
You might also like to view...
________ are statements about proposed relationships rather than merely questions to be answered
A) Theories B) Models C) Experiments D) Hypotheses E) Scientific notation
Lois Kent has owned and managed the operations of a small chain of sporting goods stores for the past two years. She has asked her administrative assistant to provide her with some annual reports of other companies that sell sporting goods as well as
some published reports showing norms for the sporting goods industry so that Lois can compare the financial ratios of her company with those of other companies that sell sporting goods. Discuss the limitations of using comparisons with other companies and industry norms, which Lois needs to remember.
If they are to function together as a team, the manager and members need training in ______ skills.
a. strategic planning b. group process c. decision-making d. HR management
The right of judicial review gives the ________
A) U.S. Supreme Court the ultimate power to check the excesses of either the legislative or the executive branch B) state courts the ultimate power to check the excesses of the judicial branch C) state courts the ultimate power to check the excesses of the executive branch D) U.S. Supreme Court the ultimate power to check the excesses of the administrative agencies