The Proprietorship Form of Business Organization

question 44

Multiple Choice

The proprietorship form of business organization

• A) must have at least three owners in most states.
• B) represents the largest number of businesses in the United States.
• C) combines the records of the business with the personal records of the owner.
• D) is characterized by a legal distinction between the business as an economic unit and the owner.

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Definitions:

Invested Assets

Assets that have been allocated or invested in various forms such as stocks, bonds, or real estate, aiming for a financial return.

Profit Margin Factor

A measure of a company's earnings (or profits) relative to its revenue, showing the percentage of each dollar of sales that results in profit.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of multiple investments.

Income From Operations

The earnings generated from a company's regular core business operations, excluding deductions of interest and taxes.