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Juan Carlos Originally Hoped to Purchase a Home

question 62

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Juan Carlos originally hoped to purchase a home. However, because he could not earn enough money to ever afford one, he decided that a home was no longer important. Instead, he found happiness through quitting his job, moving into a shack in the woods, and enjoying the solitude. Merton would classify Juan Carlos's adaptation to strain as:


Definitions:

Capital Surplus

Excess amount received by a company over the par value of its stock, representing additional paid-in capital.

Earned Surplus

The portion of a company's net income that is retained for reinvestment, rather than being distributed as dividends to shareholders.

MBCA

Model Business Corporation Act, a recommendation for state law on corporations, providing a template for corporate governance and operations.

Net Asset Test

A financial assessment to determine a company's or individual's net worth by subtracting total liabilities from total assets.

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