Which of the Following Statements Regarding Business Forms Is True

question 102

Multiple Choice

Which of the following statements regarding business forms is true?

• A)A sole proprietorship is an unincorporated business owned by one person.
• B)All partnerships are owned by two people.
• C)A corporation is not a legal entity.
• D)An LLC (limited liability company)has the same tax treatment as a corporation.

Understand the taxation and legal entity designation options for limited liability companies.

Comprehend the conditions under which partners can withdraw assets.

Recognize how partnership income is shared among partners.

Grasp the liability implications for partners in a general partnership.

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Definitions:

Precision Drills

High-accuracy tools used for making holes in various materials with exact measurements.

Variable Overhead

Costs that fluctuate with production volume, such as utilities or materials used in the manufacturing process.

Overhead Efficiency

The effectiveness with which an organization manages its overhead costs in relation to its operational activities.

Direct Labor-Hours

Cumulative working hours of employees specifically involved in the production process.