Which Form of Ownership Is the Least Costly to Form

question 37

Multiple Choice

Which form of ownership is the least costly to form?

• A)Sole proprietorship
• B)Corporation
• C)Partnership
• D)Limited liability corporation

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Definitions:

Total Rate of Return

The comprehensive yield on an investment over a specific period, considering both capital gains and dividends or interest, expressed as a percentage of the initial investment.

Dividend Growth Model

A valuation method that estimates the price of a company’s stock based on the dividend per share and the dividend growth rate.

Constant Rate

A fixed rate, without variation or fluctuation over time.

Dividends

Dividends are payments made by a corporation to its shareholder members, usually derived from the company's profits.