Denzel Has a Lot of Expertise in Architecture but Doesn't

question 7

Multiple Choice

Denzel has a lot of expertise in architecture but doesn't know much about management. He'd like to share ownership in a business with another person who could offer the management expertise to make the business successful. Which of the following will he likely form?

• A) sole proprietorship
• B) corporation
• C) partnership
• D) joint venture

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Definitions:

Cash Dividends

Distributions of earnings paid to shareholders in the form of cash.

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment to improve its long-term performance and efficiency.

Cash Dividends

Profits paid by a corporation to its shareholders in the form of cash.