Jonathan Inherited a Large Amount of Money from His Uncle

question 179

Multiple Choice

Jonathan inherited a large amount of money from his uncle.Jonathan 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

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Definitions:

Organizational Culture

Common values, beliefs, and standards that guide how employees perceive, feel, and act within a company.

Social Control

Mechanisms, strategies, and practices that societies or institutions employ to regulate individual or group behavior, aiming to ensure conformity to established norms and rules.

Corporate Cults

Refers to companies that create an environment with intense organizational identification and loyalty, often to the exclusion of outside influences or perspectives.

Mental Model

An individual's internal representation of the external world, influencing how they interpret and interact with it.