The Three Crosby Children Intend to Form a Business

question 65

Multiple Choice

The three Crosby children intend to form a business. The business will borrow $900,000 from a local bank. Which of the following statements is true?

• A) Regardless of whether the business is a partnership or an S corporation, the owners will include the bank debt in the tax basis of their ownership interests.
• B) From a liability standpoint, the owners should be indifferent as to whether they are a general partnership or an S corporation.
• C) If the business is an S corporation, the owners can allocate income and losses in any reasonable manner.
• D) If the business is a partnership the owners can allocate income and losses in any reasonable manner.

Grasp the humanistic theory and its emphasis on positive motivation and growth towards higher functioning.

Identify the concepts of positive regard and conditional positive regard as explained by Rogers.

Recognize the difference between psychodynamic, humanistic, and behaviorist approaches in psychology.

Understand the significance of objective tests in revealing attitudes and feelings, and the critique from a psychodynamic perspective.

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Definitions:

Indifference Curve

A graph that shows different combinations of two goods among which a consumer is indifferent, implying the same level of utility for each combination.

Hicks Version

Refers to John Hicks' adaptation of consumer demand theory, particularly in relation to indifference curves and utility maximization.

Substitution Effect

A modification in buying behavior triggered by a change in goods' comparative prices, prompting people to switch from one product to another.

Indifference Curve

A graph representing combinations of goods that provide the same level of satisfaction to a consumer.