Upton Was Surprised to Find His Partner Had Signed an Agreement

question 29

Multiple Choice

Upton was surprised to find his partner had signed an agreement to sell product to a customer at below cost. He tried to cancel the contract but found out that

• A) partners have legal power of attorney to do as they please.
• B) each partner is in essence a sole proprietor.
• C) partners are seldom trustworthy.
• D) any partner can legally bind the company without the consent of any other partner.

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Definitions:

Negative Reinforcement

A behavioral technique in which the removal of an undesirable or unpleasant stimulus following a behavior increases the likelihood of that behavior being repeated.

Wearout

The diminishing returns in effectiveness or impact of an advertisement or message over time due to repeated exposure, leading to boredom or annoyance in the audience.

Extinction

In behavioral psychology, the process by which a previously learned behavior decreases in frequency or disappears due to the removal of reinforcement.

Hedonistic Consumption

The pursuit of pleasure and sensory gratification from the consumption of goods and services.