This can occur if the Microsoft .Net Framework 3.5 installation has become corrupted on the database server where Microsoft SQL Server is installed.  To resolve this, uninstall and reinstall .Net 3.5:
  1. Click Start, Control Panel, then Programs and Features
  2. Uninstall all versions of .Net 4.0
  3. Uninstall .Net 3.5
  4. Reinstall .Net 3.5
  5. Reinstall .Net 4.0
Note: Be sure to reboot the server if prompted to do so during any uninstall or reinstall.