Which of the Following Is Not a Source of Funds

question 1

Multiple Choice

Which of the following is not a source of funds for a sole proprietorship?

• A) Bank loans
• B) Family members
• C) Personal funds
• D) Selling stock or issuing bonds
• E) Small Business Administration

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Definitions:

Levered Value

The value of an investment, including the effects of borrowing; typically higher than the value without borrowing due to tax advantages and other factors.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements, often used to assess the cost of funding projects.

Pre-Tax Cost

The expense incurred by a company or individual before taxes are deducted.

Levered Value

The value of an investment or company including debt, reflecting its total worth in a leveraged state.