Jeremy Is Thinking of Starting Up a Small Business Selling

question 204

Multiple Choice

Jeremy is thinking of starting up a small business selling NASCAR memorabilia.He asks his friend, Carmen, if she'd like to join him in setting up a partnership to start the business.What is one disadvantage in joining the partnership that Carmen should consider?

• A)Carmen should realize that profits in the partnership will be reduced by dividend payments to shareholders.
• B)Carmen should realize that, as an owner of the business, she will be personally responsible for the debts of the business.
• C)Carmen should realize that the profits of the business will also be taxed as dividend income, so she faces the potential for double taxation of that business income.
• D)Carmen should realize that the Jeremy will have complete control over the business because it was his idea.

---

Definitions:

Antecedents

Events or conditions that precede and influence behavior, often studied in behavioral psychology to understand causal relationships.

Functional Analysis

A set of procedures used in FBA to analyze contextual variables, primarily focusing on consequences to reduce students’ problem behaviors. It is also used to describe the second stage of FBA, testing hypotheses.

Functional Assessment

A detailed investigation into the factors contributing to problematic behaviors, leading to targeted interventions for improvement.

Conditioned Stimuli

In classical conditioning, a previously neutral stimulus that, after being paired with an unconditioned stimulus, elicits a conditioned response.