The Simplest and Most Common Form of Business Entity Is

question 70

Multiple Choice

The simplest and most common form of business entity is the ________.

• A) sole proprietorship
• B) general partnership
• C) C Corporation
• D) limited liability company
• E) subchapter S corporation

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Definitions:

Earnings Per Share

A portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Reverse Stock Splits

A corporate action in which a company reduces the number of its existing shares to increase the share price without changing the company's market capitalization.

Cash Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

New Capital

Financial resources that are raised by a business through issuing new stocks or bonds to invest in its operations and growth.