Which Form of Business Organization Is the Most Common in the United

question 50

Multiple Choice

Which form of business organization is the most common in the United States?

• A)sole proprietorship
• B)partnership
• C)corporation
• D)nonprofit organization
• E)S-corporation

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Definitions:

Gross Method

An accounting approach where discounts for early payment are not considered until they are actually taken by the customer.

Merchandise

Goods that are purchased for resale to customers in the normal course of business operations.

Inventory Shrinkage

The loss of products between purchase from suppliers and sale to customers, often due to theft, damage, or clerical errors.

Operating Expense

Costs associated with the day-to-day operation of a business, including rent, utilities, and salaries.