David Has Decided to Open an Auto-Detailing Business

question 63

Multiple Choice

David has decided to open an auto-detailing business. He will pick up an automobile from the client, take it to his parents' garage, detail it, and return it to the client. If he does all of the work himself and takes no legal steps to form a special organization, which type of business organization, in effect, has he chosen?

• A)Limited-liability company
• B)Partnership
• C)Corporation
• D)Sole proprietorship

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Definitions:

Social Loafing

The phenomenon where individuals expend less effort when working in a group than when working alone.

Bay Of Pigs

The location of a failed invasion attempt by Cuban exiles, supported by the U.S. government, in 1961 aimed at overthrowing Fidel Castro's regime in Cuba.

Reaching Consensus

The process of arriving at a mutual agreement or decision among group members through discussion and negotiation.

Conjunction Error

A logical fallacy that occurs when someone assumes that specific conditions are more probable than a single general one.