The Three Basic Legal Forms of Business Enterprise in the United

question 226

Multiple Choice

The three basic legal forms of business enterprise in the United States are

• A) monopolies, enterprises, and competitors.
• B) vertical, horizontal, and conglomerate corporations.
• C) national, global, and multinational corporations.
• D) proprietorships, partnerships, and corporations.

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Definitions:

Transfer Price

The price used for the sale or transfer of goods and services between divisions within the same company, often used for accounting and tax purposes.

Inventory Costing

The method used to value and account for inventory, including approaches such as LIFO, FIFO, and weighted average cost.

Cost of Goods Sold

Direct costs attributable to the production of goods sold by a company, including materials and labor costs.

Sales

The transactions involved in selling goods or services to customers, often tracked to measure business performance.