The Type of Business Enterprise with the Most Entities Is

question 71

True/False

The type of business enterprise with the most entities is the sole proprietorship, followed by the corporation; but the type of business enterprise with the greatest total revenue generation per year is the corporation.

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Definitions:

Liquidity

A measure of a company's ability to pay off its short-term liabilities with its available cash and quick assets.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle if longer.

Operating Cycle

The average period of time it takes for a business to convert its inventory into cash through sales.

Twelve Months

A term commonly used in finance and business to refer to a full fiscal or calendar year.