Which Form of Business Ownership Is a Particularly Poor Choice

question 20

Multiple Choice

Which form of business ownership is a particularly poor choice for an aggressive entrepreneurial firm?

• A) C corporation
• B) Sole proprietorship
• C) Subchapter S corporation
• D) Limited partnership
• E) Limited liability corporation

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Definitions:

Merchandising Company

A type of business that purchases products to resell them at a profit without changing their form.

Ending Finished Goods

The inventory of goods manufactured and ready for sale at the end of an accounting period.

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including the costs of materials, labor, and manufacturing overhead.

Direct Materials

Direct materials are raw materials that are directly traceable to the manufacturing of a product and are an essential part of the finished product.