Low Start-Up Costs, Simplicity in Formation, and Freedom Are Advantages

question 87

Multiple Choice

Low start-up costs, simplicity in formation, and freedom are advantages in establishing a

• A) corporation.
• B) sole proprietorship.
• C) partnership.
• D) joint venture.
• E) co-operative.

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Definitions:

Voting Stock

Shares that give the shareholder the right to vote on matters of corporate policy and the election of the board of directors.

Equity Changes

Refers to variations in the owners' equity in a business over time due to earned income, distribution of profits, investments, and withdrawals.

Trading Securities

Financial instruments that are purchased and held primarily for sale in the short term to generate income on short-term price differences.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and stockholders' equity at a specific point in time.