To Reduce the Risk Inherent in ______________________________ a Company Should

question 54

Short Answer

To reduce the risk inherent in ______________________________ a company should strive for a high proportion of variable costs in its cost structure.

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Definitions:

Sole Proprietorship

A business structure where a single individual owns, operates, and is responsible for all aspects of the business.

Partnership

An authorized business entity run by two or more partners who equally divide management duties and earnings.

Limited Partnership

A business structure where at least one partner has unlimited liability and other partners have liability limited to the amount of their investment.

Limited Liability Partnership

A partnership in which some or all partners have limited liabilities, protecting them from the debts of the partnership beyond their investment.