In the Partnership Form of Business, the Owners of a Business

question 39

True/False

In the partnership form of business, the owners of a business are called shareholders.

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Definitions:

Return on Sales

A financial metric that measures the efficiency of a company in generating profits from its revenue, calculated as net income divided by total sales.

Sustainable Growth Rate

The rate at which a firm can grow if none of its financial ratios change and it doesn’t raise any new equity by selling stock. The growth in equity created by earnings retained.

Dividend Payout Ratio

A financial metric that measures the percentage of net income a firm pays out to its shareholders as dividends.

Equity

The value of an ownership interest in a company, represented by the amount of money that would be returned to shareholders if all the assets were liquidated and all the company's debt was paid off.