The Drawback(s) of Proprietorship Include

question 115

Multiple Choice

The drawback(s) of proprietorship include:

• A) the unlimited liability of the partners.
• B) conflicts with partners.
• C) existence regardless of whether the owners live or dies.
• D) difficulty in obtaining financing.
• E) complexity and cost.

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Definitions:

Incremental Cash Flows

The additional cash flow a company generates from undertaking a new project, considering only the revenues and costs directly caused by the project.

Incremental Cash Flows

The additional cash flow a business receives from undertaking a new project.

Sunk Costs

Outlays already made that cannot be refunded or retrieved.

Project Value

The total worth of a project, calculated by evaluating all incoming and outgoing cash flows to determine its overall financial benefit.