Julio and Julie Are Planning to Start a Business Providing

question 17

Multiple Choice

Julio and Julie are planning to start a business providing holistic,herbal products to consumers.This is an exciting business opportunity which has considerable growth potential.Concerned,however,about assuming a personal level of responsibility for the financial outcome of the enterprise,they decide to structure the business through:

• A)incorporation
• B)limited liability
• C)proprietorship
• D)corporation
• E)partnership

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Definitions:

Explanations

The process of making something clear or understandable, often used to describe how phenomena occur or why they are as they are.

Behaviors

Observable actions or reactions of an individual, often in response to the environment or stimuli.

Groupthink

A psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Fundamental Attribution Error

The tendency to overestimate the effect of personality or disposition and underestimate the effect of the situation in explaining social behavior.