Which of the Following Business Forms Means Personal Liability for the Owner

question 3

Multiple Choice

Which of the following business forms means personal liability for the owner of the business?

• A)Sole proprietorship
• B)LLC
• C)Corporation
• D)LLP

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Definitions:

ROE

Return on Equity evaluates a company's profit generation capacity by showing the amount of profit made from the investment of its shareholders.

EPS

Earnings Per Share, a key financial metric calculating the portion of a company's profit allocated to each outstanding share of common stock.

Economic Climate

The overall state of the economic environment, factoring in aspects like growth rates, employment levels, inflation, and consumer spending.

Financial Leverage

Financial leverage refers to the use of debt (borrowed funds) to amplify the potential returns to shareholders. It increases the potential for both gains and losses.