Renata and Danuta Would Like to Form a Business Providing

question 72

Multiple Choice

Renata and Danuta would like to form a business providing take-out meals to homebound destitute residents of Las Vegas.The meals would be ordered from a menu provided by their company and prepared and delivered by Renata and Danuta.They hope to eventually have their business become international in scope.They will need to raise $100,000 to get their business running and will eventually have much greater capital needs.From the following choices,select the best form of business Renata and Danuta could adopt?

• A) Nonprofit corporation
• B) Limited-liability company
• C) Syndicate
• D) Joint venture

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Definitions:

Overhead Account

An accounting category used to record all indirect costs associated with the production process, such as utilities, rent, and administrative expenses.

Actual Overhead Cost

The actual expenses incurred for overhead in the manufacturing or production process, including costs related to indirect materials, labor, and other indirect expenses.

Overapplied Overhead

Occurs when the overhead assigned to products is more than the actual overhead costs incurred.

Charged to Production

Costs that are directly allocated to the production process, including raw materials, labor, and manufacturing overhead.