The Proprietorship Form of Business Organization

question 47

Multiple Choice

The proprietorship form of business organization

• A) in most provinces, must have at least two owners.
• B) is often chosen for single owner operated businesses.
• C) is difficult to set up.
• D) is classified as a separate legal entity.

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Definitions:

Annual Cost Savings

The reduction in total expenses achieved during a fiscal year, often as a result of efficiency improvements, renegotiating contracts, or eliminating waste.

Pretax Return

The profit a company generates before taxes are deducted.

Profitability Index

An economic instrument that evaluates the comparative profitability of an investment by dividing the current value of forthcoming cash flows by the initial cost of investment.

Cash Inflows

The total amount of money being transferred into a business, often from operations, financing, or investing activities; critical for assessing a company's liquidity and financial health.