A __________ Is a Legal Entity That Exists Separate from Its

question 58

Multiple Choice

A __________ is a legal entity that exists separate from its owners,protects the owners from personal liability,and gives the firm a life of its own beyond that of its owners.

• A)Sole proprietorship
• B)Partnership
• C)Corporation
• D)Limited liability partnership
• E)Angel investor

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Definitions:

Put Option

A financial contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time.

Stock Price

The cost of purchasing a share of a company, as traded on a stock exchange, which may fluctuate based on supply and demand dynamics.

Exercise Price

The price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Stock Volatility

The rate at which the price of a stock increases or decreases for a given set of returns, indicative of the risk or stability.