A Sole Proprietorship Is Owned by

question 8

Multiple Choice

A sole proprietorship is owned by

• A) one person.
• B) two or more people.
• C) shareholders.
• D) bankers.

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Definitions:

Nominal Rate

The stated interest rate of an investment or loan, not accounting for compounding or inflation effects.

Annual Rate

The interest rate for a period of one year, often used to compare the yearly interest between financial products without compounding.

Appreciated

Refers to an increase in the value of an asset over time.

Compounded Semiannually

Interest calculated twice per year, with the first period's interest being added to the principal before the second period's interest is calculated.