Which of the following is a disadvantage of a sole proprietorship?

A. Excessive regulation.
B. Unlimited liability.
C. Double taxation.
D. Entrenched management.


Answer: B

Business

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Indicate whether the statement is true or false

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What will be an ideal response?

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Which of the following statements is CORRECT?

A. Lower beta stocks have higher required returns. B. A stock's beta indicates its diversifiable risk. C. Diversifiable risk cannot be completely diversified away. D. Two securities with the same stand-alone risk must have the same betas. E. The slope of the security market line is equal to the market risk premium.

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