In 1984, Suzanne Pogell Wanted to Learn to Sail, but She

question 106

Multiple Choice

In 1984, Suzanne Pogell wanted to learn to sail, but she could find no one to teach her. She finally did convince someone to teach her to sail and, after mastering sailing, she started an all-woman sailing school called "Womanship" as a sole proprietorship. Which of the following represents the meaning of unlimited liability to Suzanne?

• A) She usually has to put in an unlimited number of hours.
• B) She is fully liable for all business debts.
• C) She must have liability insurance.
• D) She has unlimited access to funds.

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Definitions:

Cost of Capital

The minimum return that a business needs to generate on its projects to preserve its marketplace value and draw in financing.

Flotation Costs

Expenses incurred by a company in issuing new stocks or bonds, including underwriting, legal, and registration fees.

Tax Rate

The rate at which taxes are imposed on the income of a person or business.

Expected Growth Approach

A method for estimating a company's future growth by analyzing historical data, trends, and external market factors.