Question

Melvin and Neil run a pawnshop in their neighborhood. They offer loans to individuals in exchange for personal items of higher or equal value, which are used as collateral. If an individual is unable to repay the loan, Melvin and Neil then sell these items at higher rates. In this scenario, Melvin and Neil's pawnshop is an example of a___________________.

Answer 1

Answer:

Business

Explanation:

A business is a legal activity which we undertake to earn money.  In this case, both Melvin and Neil work together to earn money by running pawnshop. Selling of personal items of the borrower and interest receipts are part of the operations of the business. It is not proven from the scenario that it is partnership (business type) because it is not written that both Melvin and Neil share profits and losses associated with this business.