Which of the Following Is True About Forms of Businesses

question 48

Multiple Choice

Which of the following is true about forms of businesses?

• A) Partnerships involve the separation of ownership and management.
• B) Sole proprietorships are the same as S corporations.
• C) A corporation's owners directly absorb profits and losses.
• D) Double taxation is a big disadvantage of S corporations.
• E) The owners of an LLC are not personally responsible for debts that the LLC accumulates.

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Definitions:

Standards

Established norms or criteria in various fields that define the expected or agreed levels of quality, achievement, or production.

Product Costs

The three components of manufacturing cost: direct materials, direct labor, and factory overhead costs.

Direct Labor

The labor cost associated with workers who are directly involved in the production of goods or the provision of services.

Direct Materials

Raw materials that are directly incorporated into the finished product and can be easily traced to it.