Bill Is Starting Up a New Business

question 72

Multiple Choice

Bill is starting up a new business. In order to raise the capital needed for the business, Bill has sold shares of his company to a few close relatives. This type of structure is known as a

• A) sole proprietorship.
• B) private corporation.
• C) macroenterprise.
• D) public enterprise.
• E) public corporation.

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Definitions:

Capacity Analysis

The process of determining the maximum level of output a company or production facility can achieve within a given period, considering limitations such as equipment and labor.

Time-Driven Activity-Based Costing

A refinement of activity-based costing that assigns costs based on the actual duration activities take, using predetermined time estimates.

Customer Service Department

A division of a business that handles queries, supports customers with problems or complaints, and provides information about products or services.

Customer Cost Analysis

A process of determining the total cost incurred by a business to serve a customer, including all direct and indirect expenses.