A Very Important Consideration in Picking a Legal Form of Business

question 11

Multiple Choice

A very important consideration in picking a legal form of business is_________.

• A)how long you plan to run the business
• B)how much legal liability you are willing to accept
• C)how successful you believe your business will be
• D)how many competitors you expect to have

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Definitions:

FOB Shipping Point

A shipping term indicating that the buyer assumes responsibility for the goods and the associated costs once the goods leave the seller's premises.

Ending Inventory

Ending inventory is the total value of all inventory, including raw materials, work-in-progress, and finished goods, that a company has at the end of an accounting period.

FOB Destination

A shipping term indicating that the seller bears delivery costs and risks until the goods reach the buyer's specified location.

Perpetual Inventory System

A perpetual inventory system continuously updates the record of inventory with each sale or purchase, providing real-time data on the inventory levels.