Which of the Following Is the Simplest Form of Business

question 25

Multiple Choice

Which of the following is the simplest form of business, owned and operated by one person?

• A) franchise
• B) partnership
• C) sole proprietorship
• D) syndicate

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Definitions:

Production Orders

Instructions or commands produced to initiate the manufacture of a specific quantity of goods at a specified time.

Activity-Based Costing

A costing method that allocates overhead and indirect costs to specific activities, providing more accurate product costing.

Direct Labor Rate

The cost of the work done by those employees who directly manufacture the products, usually measured per hour.

Direct Materials Cost

The expense associated with acquiring raw materials that are directly utilized in the manufacture of goods.