Which of These Is Correct Concerning a Family Corporation

question 98

Multiple Choice

Which of these is correct concerning a family corporation?

• A) The corporation must be non-profit
• B) The family owns stock, but non-family members serve as management
• C) Family members are the stockholders
• D) Family corporations are more stable than managerial corporations

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Definitions:

Accounts Receivables

Accounts Receivables are amounts owed to a business by its customers for goods or services delivered on credit, representing assets on the balance sheet.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets to generate sales revenue, calculated as sales divided by total assets.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Acid Test Ratio

A financial metric used to evaluate a company's short-term liquidity position by comparing its most liquid assets (excluding inventory) to its current liabilities.