David Wants to Go into Business as Explosive Bursts to Make

question 59

Multiple Choice

David wants to go into business as Explosive Bursts to make and market fireworks. When deciding which form of business organization would be most appropriate,David would normally take into account all of the following except

• A)the liability of the owners.
• B)the forms of competitors' business organizations.
• C)tax considerations.
• D)the need for capital.

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Definitions:

Uncollectible Accounts Receivable

Accounts from customers that are considered unrecoverable, leading to a write-off as a bad debt expense.

Allowance

A reduction from the gross amount of an asset or liability, created to account for potential future adjustments such as doubtful debts or returns.

Processing Fee

A charge assessed for processing a transaction, application, or request, common in financial services.

Bank Credit Cards

Financial instruments issued by banks that allow users to borrow funds for purchases or cash advances, subject to repayment terms and interest.