(Figure: Principal-Agent Game III) What is the likely outcome of this game? 
Definitions:
Sole Proprietorship
A business structure where a single individual owns and operates the business, making them solely responsible for its debts and liabilities.
Dissolves
The act of officially ending the existence of an entity such as a corporation, partnership, or marriage.
Taxed
Imposed financial charges by a government on income, goods, or activities for public funding.
Separate Entity
A principle acknowledging that a business has its own legal identity, distinct from its owners or members, allowing it to own property, incur debts, and enter into contracts independently.
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