What Is the Most Common Type of Firm in the United

question 2

Multiple Choice

What is the most common type of firm in the United States and the world?

• A) sole proprietorships
• B) partnerships
• C) limited partnerships
• D) corporations

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Definitions:

Accrued Annual Interest

Interest that has been incurred but not yet paid over a year, representing a liability for the borrower.

Sold Bonds

The action of issuing bonds to investors, raising capital by incurring long-term debt.

Long-Term Investment

A long-term investment is an account on the asset side of a company's balance sheet that represents the company's investments, including stocks, bonds, real estate, and cash, held for more than one year.

Net Income

The total profit or loss of a company after all revenues, expenses, taxes, and costs have been subtracted from total revenue.