The Equity Section for the Single Proprietorship Can Be Called

question 10

True/False

The equity section for the single proprietorship can be called owner's equity because the equity belongs to the owner.The equity section for a corporation can be called shareholders' equity because the equity belongs to a group of owners known as shareholders.

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Definitions:

Instantaneous Risk-free Rate

The theoretical rate of return of an investment with no risk of financial loss, typically considered as a very short-term government bond yield.

Hedge Ratio

The ratio of the size of a position in a hedging instrument to the size of the position being hedged.

Strike Price

The price at which the holder of an option contract has the right to buy or sell the underlying asset.

Underlying Stock

The stock on which a derivative instrument, such as an option or future, is based.