Holly and Trent While Many Others Dreamed About Owning Their Own Business, Holly

question 86

Multiple Choice

Holly and Trent
While many others dreamed about owning their own business, Holly Gabrel decided to do something about it. Holly knew that being self-employed required long hours and hard work, but with the help of her husband, Trent, Holly was positive that the hours and the work would be rewarded. First, she and Trent developed a new concept in sunglasses that could be used by athletes better than the sunglasses now on the market. Holly and Trent obtained a patent on their invention, and began production and marketing.
-If the business is legally Holly's and she assumes unlimited liability, then the business form would be:

• A) a sole proprietorship.
• B) a partnership.
• C) a corporation.
• D) a chapter S42.5.
• E) none of these.

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Definitions:

Ending Inventory

The aggregate worth of a corporation's goods, raw materials, and both completed and in-progress items that remain unsold at the conclusion of a financial period.

Brown Bears

A species of bear noted for its varying sizes and colors, found in parts of North America, Europe, and Asia.

LIFO Method

An inventory valuation method that assumes the most recently produced items are sold first, with 'LIFO' standing for "last in, first out."

Ending Inventory

The total value of all unsold goods that a company has in its possession at the end of an accounting period.