A Firm with Multiple Owners Who Share the Profits and Bear

question 152

Multiple Choice

A firm with multiple owners who share the profits and bear unlimited liability for the firm's losses and debts is known as a(n) :

• A)Sole proprietorship
• B)Partnership
• C)Corporation
• D)Nonprofit organization
• E)Producer cooperatives

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Definitions:

Expected Excess Return

The return expected on an investment over and above the risk-free rate, taking into account both the risk involved and the time value of money.

Beta

A measure of a stock's volatility in relation to the overall market; it indicates the risk associated with a particular equity in comparison to the market as a whole.

Expected Return

The anticipated profit or loss from an investment, based on historical data or statistical analysis, often used as a forecast.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values, commonly used in finance to assess the volatility of investment returns.