A Legal Entity That May Conduct Business in Its Own

question 68

Multiple Choice

A legal entity that may conduct business in its own name just as an individual does is a(n)

• A) corporation.
• B) entrepreneur.
• C) proprietorship.
• D) partnership.

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Definitions:

Administrative Expense

Overhead or operational costs not directly linked to production but necessary for running the administrative aspects of a business.

Selling Expense

Costs associated with selling activities, including advertising, sales commissions, and retail space rental.

Master Budget

The master budget is a comprehensive financial planning document that includes all of a company's budgeted financial statements and operating plans for a specific period.

Raw Materials

The basic materials and components used in the production processes of manufacturing goods.