Frank Would Like to Avoid Personal Financial Loss If His

question 53

Multiple Choice

Frank would like to avoid personal financial loss if his business idea does not work.Which form of ownership would you suggest?

• A)sole proprietorship
• B)partnership
• C)professional corporation
• D)corporation

Calculate activity variances and identify them as favorable or unfavorable.

Prepare flexible budgets based on actual activity levels.

Analyze the financial performance of a company through its activity variances.

Understand the impact of cost drivers (such as student numbers, course count, guests, jeeps, etc.) on budgeting.

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Definitions:

Bystander Effect

A social psychological phenomenon in which individuals are less likely to offer help to a victim when other people are present.

Diffusion of Responsibility

A phenomenon where individuals in a group are less likely to take action or feel a sense of responsibility because the responsibility is perceived to be shared among all group members.

Darley and Latané

Psychologists known for their work on the bystander effect, demonstrating that the presence of others can decrease an individual's likelihood to help someone in distress.

Milgram's Obedience Study

Milgram's obedience study is a psychological experiment conducted in the 1960s which demonstrated the extent to which individuals would follow orders from an authority figure, even when it involves hurting someone else.