The Form of Business Organization That Accounts for Almost 83

question 18

Multiple Choice

The form of business organization that accounts for almost 83 percent of all sales revenues in the United States is the _____.

• A) sole proprietorship
• B) partnership
• C) corporation
• D) joint venture
• E) syndicate

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Definitions:

Differential Costs

The difference in total cost that will result from selecting one choice over another.

Sunk Costs

Sunk costs refer to money already spent and permanently lost, which cannot be recovered and should not influence future financial decisions.

Opportunity Costs

A rephrased definition: The potential gains or benefits that are lost when choosing one alternative over another in decision-making.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.