All of the Following Are Advantages for Choosing a Proprietorship

question 85

Multiple Choice

All of the following are advantages for choosing a proprietorship for a business except

• A)a proprietorship is a simple form of business to set up.
• B)a proprietorship gives the owner control of the business.
• C)proprietorship receive more favorable tax treatment.
• D)transfer of ownership is easily achieved through stock sales.

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Definitions:

Risk-Free Return

The return on investment that is guaranteed, with no risk of financial loss.

Wildcat Fund

An investment fund that takes higher risks in anticipation of higher rewards, often investing in unproven sectors or speculative ventures.

Information Ratio

A measure of portfolio returns beyond the returns of a benchmark, relative to the volatility of those excess returns.

Risk-Free Return

The theoretical return on an investment with no risk of financial loss, traditionally associated with government bonds or bills.