The Only Type of Business That Faces Unlimited Liability Is

question 248

True/False

The only type of business that faces unlimited liability is a sole proprietorship.

---

Definitions:

Speculative Bubble

A situation in financial markets where asset prices are driven by exuberant market behavior, greatly exceeding the asset's intrinsic value.

Fundamental Value

Fundamental value is the intrinsic worth of an asset, determined through financial analysis of its underlying factors including earnings, dividends, and growth prospects.

Risk-Return Tradeoff

The principle that potential return on investment increases with an increase in risk.

Average Return

The mean amount of profit or loss generated by an investment over a specific period.