A Businessperson Who Enters into a Contract with an Investor

question 101

True/False

A businessperson who enters into a contract with an investor on behalf of a future corporation is not personally liable on the deal, even though the firm is not yet formed, because the nature of investment is risk.

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Definitions:

Partial Reinforcement

A conditioning principle where only some of the responses made are followed by reinforcement, leading to more resistant behavior to extinction.

Unpredictable Number

A number whose value cannot be anticipated or determined due to its random or variable nature.

Variable-Ratio Schedule

In operant conditioning, a reinforcement schedule that reinforces a response after an unpredictable number of responses.

Intermittent Reinforcement

A learning process in which a response is rewarded only part of the time, leading to more resilient behaviors.