Partnerships Are a Common Form of Business Entity for Small

question 10

Multiple Choice

Partnerships are a common form of business entity for small service businesses because:

• A)they provide legal protection for the proprietor from the creditors of the firm.
• B)they are ideal for where the business is owned by one person.
• C)there are no legal requirements that need to be met to form a partnership.
• D)they allow the company to buy,own and sell property.

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Definitions:

Manufacturing Costs

Expenses directly related to the production of goods, including raw materials, labor, and factory overhead.

Overhead Applied

is the amount of manufacturing overhead cost allocated to each product or job, based on a predetermined overhead rate.

Machining Department

A section within a manufacturing facility where machining processes, such as cutting, shaping, and drilling, are carried out.

Manufacturing Overhead

All indirect costs associated with manufacturing, such as maintenance, supervision, and utilities, excluding direct materials and direct labor.