The Simplest Form of Business Owned and Operated by One

question 45

Multiple Choice

The simplest form of business owned and operated by one person is called a(n)

• A) franchise.
• B) partnership.
• C) S-corporation.
• D) sole proprietorship.
• E) syndicate.

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Definitions:

Debt at Maturity

Debt at Maturity refers to the total amount, including principal and any accumulated interest, that must be repaid at the end of a loan's term.

Return on Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Profitability of Assets

Profitability of Assets assesses how effectively a company uses its assets to generate profits, typically measured as a ratio of net income to total assets.

Common Stockholders

Owners of common shares in a corporation, who have voting rights and are entitled to dividends as declared by the company's board of directors.