Which of the Following Would Be an Example of a Corporation

question 42

Multiple Choice

Which of the following would be an example of a corporation?

• A)Sparkles is a business firm owned by a single person who takes up complete liability for the business.
• B)The owners of Octave Inc. are not personally responsible for the debts and obligations of the firm.
• C)The profits earned by Luxe Clothing are legally considered as the income of the firm's owners.
• D)The dissolution of Nutrimax Pizzas results in its owners having to repay the debts of the firm.

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Definitions:

Conversion Cost

Costs incurred during the transformation of raw materials into finished goods, specifically focusing on direct labor and manufacturing overhead expenses.

Direct Materials

Direct materials refer to the raw materials and components that are directly used in the manufacturing of a product, often considered a variable cost.

Period Costs

Expenses that are not directly tied to the production process and are expensed in the period they are incurred, such as selling, general, and administrative costs.

Operating Costs

Expenses related to the operation of a business, excluding costs associated with producing goods directly.