Darrell Inherited a Large Amount of Money from His Uncle

question 186

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 proprietorship 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

Understand the economic reasoning behind individuals' choices regarding personal time and task allocation.

Identify household behavior as demanders in economic transactions.

Recognize different forms of household income and types of goods.

Understand the basic concepts and advantages of sole proprietorships.

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Definitions:

Infants

Young children, typically under one year of age, who are in the early stages of development.

Low Birthweight

Refers to a birth weight of a newborn less than 2,500 grams (5 pounds, 8 ounces), which may be linked to health issues.

Brain Development

The process of growth and change in the brain’s structure, function, and pathways that occurs throughout a person’s life, but is most intense during childhood.

Selective Attrition

The phenomenon where participants drop out of a study over time, potentially leading to biased results if the dropout rate varies among the groups being studied.