A Large Number of Businesses Are Organized as Sole Proprietorships

question 190

True/False

A large number of businesses are organized as sole proprietorships because it is easy for them to acquire large sums of financing.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Outlay

The amount of money spent on a particular expense or investment.

Payback Period

The time it takes for an investment to generate an amount of income or cash equal to the cost of the investment.

Cash Inflows

Money or other forms of financial assets that come into a company, contributing to its total revenue.