The Minimum Actual Return Necessary to Induce Investors to Invest

question 10

True/False

The minimum actual return necessary to induce investors to invest is known as the expected return.

---

Definitions:

Partnership Interest

The share or portion of a partnership's profits and losses that is attributed to each partner.

Equipment

Tangible property used in the operation of a business, such as machinery, computers, and furniture, often subject to depreciation over its useful life.

Current Cash Distribution

Current Cash Distribution refers to the amount of cash distributed to the investors or partners of a business at the present time.

Long-term Capital Gains

Profits from the sale of an asset held for more than a year, generally taxed at lower rates than ordinary income.