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Kim Nguyen Is a Sole Proprietor Planning to Open a Home

question 30

Multiple Choice

Kim Nguyen is a sole proprietor planning to open a home décor boutique selling imports from around the world. Like most small businesses, this new business will likely be managed by which of the following?


Definitions:

Thrifts

Financial institutions that primarily accept savings deposits and make mortgage loans, including savings and loan associations, savings banks, and credit unions.

Market Risk

The risk of losses in investments due to factors that affect the overall performance of the financial markets, such as economic changes or natural disasters.

Purchasing Power Risk

The risk that the value of money will decrease over time due to inflation, affecting the real value of investments and savings.

Investment Principal

A sum of money invested initially in a financial instrument or vehicle, which serves as the base on which returns or interest is calculated.

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