18) Fred purchased shares of stock In a fast-food corporatlon for $10,000. Marla ls a sole proprletor of a fast-food restaurant that she purchased for $10,000. Which of the following statements best descrlbes
the maximum amount that Fred and Marla can lose on thelr Investments? (SSEMI3A DOK: 2)
A. Fred can only lose $10,000, but Marla can lose more
B. Marla can only lose $10,000, but Fred can lose more
c. Both Fred and Marla can lose only $10,000
D. Both Fred and Marla can lose more than $10,000

A. Fred can only lose $10,000, but Marla can lose more

Explanation:

Fred can lose a maximum of $10,000 because he bought shares of a corporation. Shareholders of a corporation enjoy limited liability to its debts. Should the corporation face liquidation, the shareholder's liability is limited to the value of share contribution. It means that Fred can lose a maximum amount equal to the shares he purchased should the corporation collapse.

Marla bought a sole proprietorship business. The law considers a sole proprietorship business and the owner to be the same thing. Marla's business assets are her assets, while the debts of the business will be her debts. Should the restaurant incur debts more than the $10,000 that Marla paid for it, she stands to lose more if her business collapses. Her assets will be used to settle the debts of the restaurant.

steering wheels are always situated on the left side of the car.

always drive on the right side of the road.

white lines separate lanes of traffic traveling the same direction.

hashed or broken lines means you may change lanes when it is safe.

solid white lines mean stay in your lane.

yellow lines separate traffic moving in opposing directions.

hashed or broken yellow lines mean you can carefully pass, paying attention to oncoming traffic.

never cross a solid yellow line (or double yellow line).

when turning left at an intersection, pass in front of any cars that are turning left from the opposing direction (do not try to pass behind them).

use the left lane to pass other cars traveling your direction.

do not pass in the right lane unless absolutely necessary.

if you are driving in the far left hand lane and someone would like to pass you, move over to the right lane when it is safe to do so and allow them to pass.

you must always yield to pedestrians.

come to a complete stop whenever you see pedestrians trying to cross the street.

never pass a school bus if it has flashing red lights. wait until the lights have stopped.

be aware of bicyclists. often they share the road with cars and are supposed to also follow general traffic laws.

be particularly careful about driving in cities with bike lanes -- always check before turning that a bike is not coming.

it is mandatory to pull over or stop at an intersection to allow an emergency vehicle to pass you if you see one traveling with lights flashing and/or a siren running.

do not overuse your car horn. horns are used almost exclusively for emergency situations or for when you feel unsafe.

explanation:

answer; i believe that the correct answer is ( owners investment)