Darrell Inherited a Large Amount of Money from His Uncle

question 171

Multiple Choice

Darrell inherited a large amount of money from his uncle.Darrell wishes to start his own business, and his lawyers encourage him to make it a corporation.What disadvantage of a sole trader are the lawyers trying to avoid?

• A) Unlimited liability
• B) Lack of management skills
• C) Retention of all profits
• D) Lack of money
• E) Double taxation

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Definitions:

Two-Factor Theory

A theory by Frederick Herzberg that identifies motivation and hygiene factors as key to employee satisfaction and performance.

Work Outcomes

The results or outputs generated from the efforts and activities of employees or teams within an organization.

Good Performance

A measure of how well a task is executed or the success level of an endeavor or employee.

Expectancy

The probability that the amount of work effort invested by an individual will result in a high level of performance.