A Proprietary Company Must Have at Least One Shareholder and Cannot

question 16

Multiple Choice

A proprietary company must have at least one shareholder and cannot have more than:

• A) 100 shareholders.
• B) 50 shareholders.
• C) 20 shareholders.
• D) 500 shareholders.

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Definitions:

Factory Overhead

All the indirect costs associated with running a manufacturing facility, such as utilities, maintenance, and salaried personnel, that cannot be directly traced to specific products.

Direct Materials

Raw materials that are directly used in the manufacturing process of a product and can be easily traced to it.

Factory Overhead

All indirect costs related to manufacturing, such as utilities, maintenance, and salaries of indirect labor, not directly tied to production.

Direct Materials

Materials that can be directly linked to the creation of a product and represent a large part of the cost of production.