Identify Six Factors Affecting the Choice of the Most Appropriate

question 29

Essay

Identify six factors affecting the choice of the most appropriate form of business enterprise.Name the nine forms of business associations discussed in the chapter.

---

Definitions:

Administrative Expenses

Costs related to the general operation and management of a business including office supplies, salaries of non-sales personnel, and rental fees.

Installment Sales

A method of recognizing revenue from sales that are paid for over time through multiple payments.

Initial Franchise Fee

A one-time charge that a new franchisee pays to the franchiser for the rights to operate a franchise, covering initial training, support, and access to the business model.

Material Services

Significant or essential services provided that contribute directly to the output of the production process or operational efficiency.