Eric Wants to Start a Business

question 149

True/False

Eric wants to start a business. He is attracted to the idea of being his own boss, and wants to get started with a minimum of expense and hassle. He is confident in his abilities, and the market he can draw from, so he is not particularly worried about financial risks. All of these factors suggest that Eric may favor starting his business as a sole proprietorship.

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Definitions:

Drive-Reduction Theory

A psychological theory suggesting that motivation arises from biological needs driving an individual to act in ways that reduce drives and achieve homeostasis.

Physiological Needs

The most basic human necessities required to sustain life, such as air, water, food, shelter, and sleep, according to Maslow's hierarchy of needs.

Psychological Wants

Desires primarily based on emotional or mental fulfillment rather than basic survival or physiological needs.

Innate Tendency

Inborn or natural behaviors and characteristics that are genetically programmed, not learned from experience.