Which of the Following Lists the Three Types of Firms

question 125

Multiple Choice

Which of the following lists the three types of firms in the United States from smallest to largest in terms of volume of sales?

• A)partnerships, sole proprietorships, corporations
• B)sole proprietorships, partnerships, corporations
• C)sole proprietorships, corporations, partnerships
• D)corporations, partnerships, sole proprietorships
• E)partnerships, corporations, sole proprietorships

---

Definitions:

Fixed Production Costs

Costs that do not change with the level of production, such as rent, salaries, and insurance.

Financial Advantage

The benefit gained from making a particular financial decision or investment, often quantified by profits or savings.

Fixed Manufacturing Expenses

Costs that do not vary with production volume, such as rent, salary of permanent staff, and equipment depreciation.

Fixed Selling

Fixed selling refers to the portion of selling costs that remains unchanged regardless of the volume of goods or services sold.