According to Experts Which of the Following Is Likely to Become

question 88

Multiple Choice

According to experts which of the following is likely to become one of the most popular types of business organizations?

• A) limited-liability companies
• B) S-corporations
• C) partnerships
• D) sole proprietorships
• E) corporations

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Definitions:

Systematic Risk

The risk inherent to the entire market or entire market segment, which cannot be eliminated through diversification.

Index Model

A model that describes the relationship between the returns of a stock and the returns of a market index.

Covariance

A measure of the degree to which two variables move in relation to each other, with a positive covariance indicating that they tend to move in the same direction.

Standard Deviation

A statistical measure that represents the dispersion or variability of a set of data points, often used in finance to gauge the volatility of an investment's return.