A Business Whose Owners Enjoy Limited Liability Is a

question 40

Multiple Choice

A business whose owners enjoy limited liability is a

• A) proprietorship.
• B) partnership.
• C) corporation.
• D) sole proprietorship.

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Definitions:

Variable Expenses

Expenses that fluctuate in direct proportion to the amount of production or the volume of sales, including items like direct labor and raw materials.

Contribution Margin

The amount by which the sale of a product exceeds its variable costs, contributing to covering fixed costs and generating profit.

Break-Even

The point at which total costs and total revenues are equal, meaning no net loss or gain, and the business is just covering all its expenses.

Fixed Expenses

Costs that remain constant for a given period regardless of the level of production or sales volume.