What Are the Different Legal Forms That a Small Business

question 33

Essay

What are the different legal forms that a small business can take? Explain the factors that should be considered when choosing a legal form.

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Definitions:

Depreciation

The accounting process of allocating the cost of a tangible asset over its useful life.

Merchandise Inventory

Goods that a retailer, wholesaler, or distributor holds for the purpose of resale.

Monthly Depreciation

The allocation of an asset's cost over its useful life on a monthly basis, reflecting its consumption or wear and tear.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, helping manage liquidity and cash reserves.