Which Type of Business Is the Easiest and Cheapest to Form

question 26

Multiple Choice

Which type of business is the easiest and cheapest to form?

• A)Limited partnership
• B)Limited liability company
• C)General partnership
• D)Corporation
• E)Sole proprietorship

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Definitions:

Lower of Cost

A valuation rule often used in inventory accounting to record the cost of inventory at the lower of its original cost or its current market value.

Market Method

The market method is an approach to valuing certain assets based on the current market prices of similar assets.

Inventory Errors

Inventory errors are discrepancies between the actual physical inventory and the reported inventory in a company's accounting records, often leading to financial statement inaccuracies.

Consignor

The manufacturer in a consigned inventory arrangement.