Caleb Brown Has Been the Sole Owner of a Bicycle

question 20

Multiple Choice

Caleb Brown has been the sole owner of a bicycle sales and repair shop for many years.Which of the following business types would best protect Caleb's personal assets from product liability exposure?

• A) Partnership
• B) Limited liability company
• C) Proprietorship
• D) Not-for-profit

Understand the factors contributing to individual differences, including culture and heredity.

Recognize the importance and scope of personality theories in describing human behavior.

Comprehend the complex relationship between personality development and environmental factors.

Acknowledge the diverse definitions and schools of thought within personality theory.

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Definitions:

Period Costs

Expenses that are not directly tied to production and are expensed on the income statement in the period they are incurred, such as selling and administrative expenses.

Prepaids Insurance

Prepaid insurance refers to insurance premiums that are paid in advance and represent a future economic benefit for the period they cover.

Prime Costs

The combined costs of direct materials and direct labor that are directly involved in the production of goods.

Incurred

Refers to costs or expenses that have been realized or experienced by a business as a result of its operations.