Which of the Following Is a Characteristic of Partnerships

question 114

Multiple Choice

Which of the following is a characteristic of partnerships?

• A) They cannot operate in more than one state without obtaining a license to do so.
• B) They are generally subject to more regulation and governmental supervision than a corporation.
• C) They may not use any word in the name that would imply the existence of a corporation.
• D) They are the least expensive form of business organization.
• E) They allow unlimited number of people to become partners.

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Definitions:

Market Capitalization Rate

An alternative term often used to refer to the cost of equity or the expected return of a market portfolio.

Plowback Ratio

A metric indicating the percentage of earnings retained by a company after dividends have been paid out to shareholders.

P/E Ratio

A valuation metric that compares the current share price of a company to its per-share earnings.

Constant-Growth DDM

A valuation method that estimates the value of a stock by using its expected dividends, which grow at a constant rate indefinitely.