Which of the Following Is True of the Rule of 72

question 2

Multiple Choice

Which of the following is true of the rule of 72?

• A)The rule of 72 is used to approximate annual real GDP.
• B)The rule of 72 determines the time required for any value to double if it grows at a constant annual rate.
• C)The rule of 72 is used to calculate the number of years it takes for any quantity to treble in size.
• D)The rule of 72 refers to the fact that real GDP doubles every 6 years.
• E)The rule of 72 refers to the fact that capital growth has consistently contributed 72 percent to the U.S.real GDP.

Learn about the fiduciary duties of members and managers within LLCs and other forms of business partnerships.

Understand the legal consequences of business entities’ actions, including liability for acts that contribute to harm or breach of duties.

Recognize the taxation options and consequences for LLCs and the implications for federal and state taxes.

Understand the rights and responsibilities of members in a business entity, including voting rights, profit distribution, and the impact of dissociation.