A Business Owned by a Single Individual Who Is Fully

question 86

Multiple Choice

A business owned by a single individual who is fully liable for its debts is called

• A) a corporation.
• B) a proprietorship.
• C) a partnership.
• D) an agency.

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Definitions:

Mutually Exclusive

Situations or options where the choice of one excludes the ability to choose any of the other options.

After-tax Cash Flows

After-tax cash flows are the net cash flows a company generates after accounting for taxes.

Salvage Value

Salvage value is the estimated resale value of an asset at the end of its useful life.

Equivalent Annual Annuity

The annual cash flow of an investment that yields the same present value as the investment’s costs, used in capital budgeting to compare the profitability of investments.