It Is Easier to Raise Funds in a Partnership Than

question 22

Multiple Choice

It is easier to raise funds in a partnership than in a sole proprietorship because

• A)more people means greater earning power and credit.
• B)partners have better organizational control.
• C)banks know them better.
• D)partners have more combined experience.
• E)all of the above.

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Definitions:

Rate of Return

It measures the gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.

NPVGO

Net Present Value of Growth Opportunities; an assessment method to evaluate the value of investing in new projects or equipment considering the present value of expected growth opportunities.

Investor's Return

The profit or loss made on an investment, expressed as a percentage of the initial investment amount.

Current Dividends

Refers to the dividends that are declared and paid by a company for the current fiscal period.