Why Is an Owner's Choice of the Form of Business

question 34

Multiple Choice

Why is an owner's choice of the form of business organization a critical decision?

• A) It determines financial liability for the business.
• B) It determines whether the business may have employees.
• C) It determines where the organization may conduct its operations.
• D) It determines whether funds can be borrowed to finance operations.

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Definitions:

Wheelbase Length

The distance between the center of the front and rear wheels of a vehicle, affecting its stability and handling.

Centimeters

A metric unit of length equal to one hundredth of a meter.

Inches

A unit of measurement in the Imperial system, equal to 1/12th of a foot.

Marathon

A long-distance running race with an official distance of 42.195 kilometers (approximately 26.219 miles).