Two Dermatologists Have Created a Skin Care Line to Help

question 60

Multiple Choice

Two dermatologists have created a skin care line to help with blemishes and wrinkles. They'd like to go into business selling their products. Which form of business would allow them to combine the benefits of a corporation and a partnership while avoiding some of the disadvantages?

• A) an entrepreneurship
• B) a joint venture
• C) an LLP
• D) a sole proprietorship

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Definitions:

Ending Inventories

The total value of all unsold goods that a company has in stock at the end of an accounting period.

Direct Labor Budget

A financial plan that estimates the cost of direct labor needed to meet production goals, part of the overall budgeting process.

Direct Labor-Hour

A measure of the labor time directly involved in the manufacturing process or service delivery, often used in costing and budgeting.

Budgeted Production

The planned level of output a company aims to achieve in a specific period, used for preparing budgets and setting production goals.