Which Form of a Business Does Not Have the Capacity

question 14

Multiple Choice

Which form of a business does not have the capacity to borrow capital in its own right?

• A) an unlimited proprietorship
• B) a sole proprietorship
• C) an unlimited corporation
• D) a sole corporation

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Definitions:

Vertical Analysis

A method in financial statement analysis where each entry for the three major categories (assets, liabilities, and equity) in a balance sheet is represented as a proportion of the total account.

Price-Earnings Ratio

A financial metric that evaluates the market value of a stock relative to its earnings, indicating investor expectations.

Market Price

The current value at which an asset or service can be bought or sold.

Earnings Per Share

A company's profit divided by the outstanding shares of its common stock, indicating the company's profitability.