Solved

[Tutoring Concerns] André and Sasha Want to Go into Business

question 69

Multiple Choice

[Tutoring Concerns] André and Sasha want to go into business together and plan on offering a tutoring service to high school and college students.André proposes that they share control of the business and split profits equally and not bother with a written agreement.Sasha,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 their test scores do not improve.She tells André that she just bought a new boat and car,and that she does not want her assets to be in jeopardy.She tells André that they should form a corporation to shield their personal assets.André,however,tells Sasha that their personal assets are not in danger with his proposal because they are a business and that,furthermore,forming a corporation would result in a tax being imposed twice.
-What type of arrangement did André propose when he suggested that they share control of the business and split profits equally,not bothering with a written agreement?

Definitions:

Shankman and Allen

Refers to scholars known for their work in the field of leadership, especially in formulating theories on ethical leadership and its impact on organizations.

Major Leadership Traits

Key characteristics often found in successful leaders, such as integrity, intelligence, and self-confidence.

Social Relationships

Connections and interactions between individuals or groups, influencing and contributing to social structures and dynamics.

Situational Factors

External conditions or events that influence the effectiveness of leadership and management practices.