Which of the Following Is Not a Major Category of Business

question 106

Multiple Choice

Which of the following is not a major category of business structure?

• A) Sole proprietorship
• B) Partnership
• C) Public agency
• D) Corporation

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Definitions:

Net Present Value

A calculation that compares the value of a dollar today to the value of that same dollar in the future, considering inflation and returns, used to evaluate investments.

IRR

Internal Rate of Return; a financial metric used to gauge the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Cost of Capital

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

Profit Margin

A financial measurement that calculates the percentage of profit a company makes from its total revenue.