Cal Sells "DownSize," a Weight-Reduction Program, from a Web Site

question 33

Multiple Choice

Cal sells "DownSize," a weight-reduction program, from a Web site, in competition with Eat-Less Inc.'s product "Fit 'n Trim." Eat-Less files a suit against Cal, alleging in part that he is a sole proprietor, but his enterprise should be deemed a different form of business. Cal's enter?prise should most likely be considered

• A) a corporation because DownSize is sold online.
• B) a franchisee because DownSize is sold in competition to Fit 'n Trim.
• C) a sole proprietorship because Cal is a sole proprietor.
• D) no form of business entity because Cal has no formal organization.

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Definitions:

Formal-Operations

A stage in Piaget's theory of cognitive development, typically beginning around age 12, where individuals start to use abstract and logical thinking.

Concrete-Operations

A stage in Piaget's theory of cognitive development where children gain the ability to think logically about concrete events.

Preoperational Child

Refers to the stage in Piaget’s theory of cognitive development (ages 2-7) where children begin to use language and think symbolically, but their thinking is still intuitive and egocentric.

Conservation

The principle of saving natural resources to prevent depletion and harm to the environment.