A Proprietorship Is an Unincorporated Business Owned by One Individual

question 14

True/False

A proprietorship is an unincorporated business owned by one individual and the owner benefits from the limited liability for business, which limits his losses to what he has invested in the company.

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Definitions:

Market Price

The ongoing rate at which a service or asset is available for purchase or sale in the market.

Net Present Value

A financial metric that calculates the worth of a projected investment by discounting future cash flows to their present value.

Shareholders

Shareholders are individuals or entities that own shares of stock in a corporation, giving them partial ownership of the company.

Merger

The combination of two or more companies into a single entity, typically to achieve synergistic effects.