Samuel and Dexter Start a Logistics Company Together

question 112

Multiple Choice

Samuel and Dexter start a logistics company together. Both of them have an equal right to participate in the company's management and share in the company's profits. In this scenario, Samuel and Dexter most likely _____.

• A) own a corporation
• B) have a limited partnership
• C) have a general partnership
• D) own a limited liability company

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Definitions:

LIFO

"Last In, First Out," an inventory valuation method where the most recently produced or purchased items are the first to be expensed.

Absorption Costing

A costing method where all manufacturing costs including both direct costs like labor and materials and indirect costs like overhead are allocated to the product.

Variable Costing

An accounting method that only considers variable costs in the calculation of product or service costs, excluding fixed costs.

Net Operating Income

The profit a company makes from its regular business operations, excluding non-operating income and expenses.