Maria Has a Lot of Self-Confidence and Business Knowledge

question 50

Multiple Choice

Maria has a lot of self-confidence and business knowledge.She recently opened a bakery as a sole proprietor.She is expecting a high level of profits and is looking forward to:

• A)The lower corporate tax rate paid by sole proprietorships.
• B)Keeping all of the money she earns except for the taxes she is required to pay.
• C)Keeping all of the money she earns since she does not have to pay taxes as a sole proprietor.
• D)Easily raising additional large sums of money from the capital markets since she is a sole proprietor.

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Definitions:

Groupthink

A behavior pattern in a collective setting, driven by the urge for harmony or uniformity, which culminates in unsound or faulty decisions.

Devil's Advocate

A role assumed in discussions or arguments to challenge ideas and assumptions by taking an opposing viewpoint, often to clarify or test the strength of the ideas.

Apple Polishing

Informal practice of attempting to gain favor by flattering or trying to please someone.

Groupthink

In a group environment, the need for consensus or conformity creates a psychological effect that results in poor or illogical decisions.