Match the Following Characteristics with the Form of Business Entity

question 110

Multiple Choice

Match the following characteristics with the form of business entity that best describes it. Each may be used more than once.
-Offers tax and legal liability advantages for owners

• A)Proprietorship
• B)Partnership
• C)Corporation
• D)Limited liability company (LLC)

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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.