Although the Sole Proprietor's Entire Personal Fortune Is at Risk

question 40

True/False

Although the sole proprietor's entire personal fortune is at risk, insurance may offset that risk.

---

Definitions:

Class A Spa

An upscale facility offering premium health and beauty treatments, differentiated by service, amenities, or exclusivity criteria.

Present Value

The worth at present of a sum of money expected in the future or of ongoing cash payments, when discounted at a specific rate of return.

Capital Cost Allowance (CCA)

A form of tax depreciation that allows a business to deduct the cost of a depreciable property, such as buildings or equipment, over a number of years.

Fixed Assets

Long-term tangible pieces of property or equipment that a firm owns and uses in its operations to generate income.