In Which of the Following Types of Businesses Are the Owners

question 26

Multiple Choice

In which of the following types of businesses are the owners not responsible for the company debts?

• A) sole proprietorship
• B) corporation
• C) general partnership
• D) partnership

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Definitions:

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Loss

The state of experiencing a decrease in financial resources or value, often as a result of a business operation, investment failure, or theft.

Break-even Selling Price

The price at which a product must be sold to cover all associated costs of production without making a profit or a loss.

Discounted Price

The final price of a product after applying a discount to its original price.