Marco Valez Is Comparing Forms of Business Structure in Order

question 63

Multiple Choice

Marco Valez is comparing forms of business structure in order to make the best decision for the business he plans to form next month.He plans to be the only investor/owner,and he will also actively manage the business.He is convinced that the company will be profitable,so he wants to keep all of the after-tax earnings for himself.Which of the following forms of business ownership is Marco likely to choose?

• A)limited liability company
• B)sole proprietorship
• C)corporation
• D)limited partnership

---

Definitions:

Accounts Receivable

Financial obligations customers have towards a business for received goods or services that remain unpaid.

Factory Overhead

Refers to the indirect costs associated with manufacturing, including costs for utilities, rent, and maintenance of equipment not directly tied to the production of goods.

Labor Costs

The total sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes paid by an employer.

Production Orders

Instructions or commands to start the manufacturing process of goods, often specifying amounts and types of products.