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:

Cost of Equity

The earnings a firm needs to determine whether an investment satisfies its capital return criteria, commonly utilized in the process of capital budgeting.

Cost of Equity

The return a company is required to generate for its shareholders, often estimated using the Capital Asset Pricing Model (CAPM).

Market Price

The modern-day pricing for buying or selling an asset or service.

Beta

A gauge of the level of variability, or consistent risk, attached to a security or portfolio against the backdrop of the broader market.