Explain Why the Combination of Mutual Agency and Unlimited Liability

question 59

Essay

Explain why the combination of mutual agency and unlimited liability create a great deal of risk for partnerships.

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Definitions:

Social Contagion

The spread of behaviors, attitudes, and emotions through a group or society by social influence.

Self-Serving Bias

A cognitive bias that causes individuals to see their successes as based on internal factors while attributing failures to external factors.

False Consensus Effect

The tendency to overestimate how much other people share our beliefs, attitudes, and behaviors.

Stanley Milgram

A psychologist best known for his groundbreaking studies on obedience, demonstrating people's willingness to follow authority figures' orders, even to the extent of harming others.