Because of Unlimited Liability, It Is Easy for Sole Proprietors

question 167

True/False

Because of unlimited liability, it is easy for sole proprietors to borrow large sums of money.

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Definitions:

Preferred Stock

A class of stock that typically provides dividends to its holders before common stock and may have priority over common stock in the event of a liquidation.

Dividend Growth

The yearly percentage growth rate of a company's dividend disbursements.

Rate of Return

The profit or deficit on an investment across a designated timeframe, demonstrated as a proportion of the investment's original expense.

Rate of Return

The percentage of increase or decrease in the value of an investment over a specified period of time.