A Voluntary Association of Two or More People Acting as Co-Owners

question 213

True/False

A voluntary association of two or more people acting as co-owners of a business is known as a partnership.

---

Definitions:

Discount Rate

Within discounted cash flow analysis, it is the interest rate used to determine the present value of cash flows anticipated in the future.

Initial Investment

Initial Investment is the amount of money used to start a project, purchase an asset, or invest in a financial product, prior to generating any returns.

Cash Inflows

This term describes the movement of money into a business or entity, typically from operations, investments, or financing activities.

Average Accounting Return (AAR)

A financial ratio that represents the average net income divided by the average book value of the investment over its life, typically used in capital budgeting.