David Has Decided to Open an Auto-Detailing Business

question 36

Multiple Choice

David has decided to open an auto-detailing business.He will pick up a car from the client,take it to his parents' garage,detail it,and return it to the client.If he does all of the work himself and takes no legal steps to form a special organisation,which type of business organisation,in effect,has he chosen?

• A)Proprietorship
• B)Partnership
• C)Limited liability company
• D)Company

---

Definitions:

Market Value

The current price at which an asset or company can be bought or sold in the market.

Expected Earnings

The forecasted income that a company anticipates earning over a specific period, often used by investors to gauge potential investment returns.

Unlevered Cost

Unlevered cost refers to the cost of an investment or project that does not include the effects of debt financing, illustrating the cost based solely on equity financing.

Unlevered Cost

The cost of capital for a company that has no debt in its capital structure, reflecting the cost of equity alone.