A Business Which Is a Separate Legal Entity Can Be

question 1

Multiple Choice

A business which is a separate legal entity can be a:

• A)sole trader.
• B)partnership.
• C)company.
• D)all options are businesses which are separate legal entities

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Definitions:

NPV

Net Present Value is a method used to evaluate the attractiveness of an investment or project by calculating the present value of expected future cash flows using a specific discount rate.

NPV Profiles

NPV profiles are graphical representations that show the relationship between a project’s net present value and the discount rate applied to its cash flows.

Cash Flows

The net amount of cash being transferred into and out of a business, considered essential for assessing its financial health.

Cost of Capital

The cost of capital is the rate of return that a company must earn on its investment projects to maintain its market value and attract funds.