Tutoring Concerns

question 74

Multiple Choice

Tutoring Concerns.Wally and Sally want to go into business together and plan on offering a tutoring service to high school and college students.Wally proposes that they share control of the business and split profits equally and not bother with a written agreement.Sally,however,is concerned about being able to pay their debts since they will have to rent tutoring space and purchase computers and supplies.She is also concerned about parents and students who may sue if the students' test scores do not improve.She tells Wally that she just bought a new boat and car,and that she does not want her assets to be in jeopardy.She tells Wally that they should form a corporation to shield their personal assets.Wally,however,says their personal assets are not in danger with his proposal because they are a business and that,furthermore,forming a corporation would likely result in double taxation.Is Wally correct that with his proposal that because they share control of the business and split profits equally,they will not have any personal liability for debts?

Definitions:

Body Dissatisfaction

A person's negative perception of the appearance of their own body, often leading to severe emotional distress and unhealthy behaviors.

Egocentrism

The incapacity to distinguish one's own viewpoint from that of another person.

Hypothetical Thinking

The cognitive process involved in formulating and considering imaginary or "what if" scenarios, not restrained by current reality.

Deductive Reasoning

The practice of deriving a conclusion from the unification of multiple assertions believed to be true.