The Simplest and Most Common Form of Business Entity Is

question 19

Multiple Choice

The simplest and most common form of business entity is the ________.

• A) sole proprietorship
• B) general partnership
• C) C corporation
• D) limited liability company
• E) subchapter S corporation

---

Definitions:

Cost of Goods Sold

Straightforward expenses incurred in the manufacture of merchandise a company sells, involving costs of materials and labor.

Days' Sales

A financial metric that estimates a company's average collection period for receivables, often expressed in days.

Solvency

The ability of a company to meet its long-term debts and financial obligations.

Average Inventory

The mean value of inventory a business has over a certain period of time, calculated to assess inventory turnover and management efficiency.