Which of the Following Legal Forms of Business Is Owned

question 35

Multiple Choice

Which of the following legal forms of business is owned and usually operated by a single person who is responsible for its debts?

• A) Cartel
• B) Corporation
• C) General partnership
• D) Sole proprietorship
• E) Limited partnership

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Definitions:

Compounded Semi-annually

An interest calculation method where interest is added to the principal balance of an investment or loan twice a year, resulting in interest on interest.

Amortization Schedule

A detailed table showing the periodic payments on a loan, with each payment allocated between interest and principal repayment.

Gross Debt Service Ratio

A financial ratio that compares an individual's total monthly debt payments to their gross monthly income.

Amortized

The process of paying off a debt with a fixed repayment schedule in regular installments over a period of time.