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Isaac Starts a Consulting Firm with His Friend Arnie

Question 8

Multiple Choice

Isaac starts a consulting firm with his friend Arnie. They decide to equally share the profits and have unlimited liability for the debts of their business. Such unlimited liability can be a distinct disadvantage for Isaac if he has


A) less financial resources than Arnie.
B) more financial resources than Arnie.
C) comparable financial resources to Arnie.
D) the exact same financial resources as Arnie.
E) the status of a limited partner.

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