A Type of Business with Two or More Owners Who

question 52

Multiple Choice

A type of business with two or more owners who share in the operation of the firm and in the financial responsibility for the firm's debts is which of the following?

• A)Cooperative
• B)Association
• C)Partnership
• D)Corporation
• E)Franchise

---

Definitions:

Participative Budgeting

A budgeting process where employees at all levels are involved in the development of the budget, enhancing its acceptance and usefulness.

Zero-based Budgeting

A budgeting method that starts from a "zero base" every period, requiring all expenses to be justified for each new period, as opposed to being carried forward.

Top-Down Budgeting

A budgeting approach where the budget is created by top-level management and then distributed to lower levels for implementation.

Bottom-Up Budgeting

A budgeting process where the budget is prepared with the input and estimates coming from lower-level staff, before being aggregated and approved at higher levels.