A Business That Is Owned by Shareholders and Is a Separate

question 40

Short Answer

A business that is owned by shareholders and is a separate legal entity is a _______________.

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Definitions:

Sales

The revenue generated from goods or services sold by a company in the ordinary course of its business.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted; it contributes towards covering fixed costs and generating profit.

Administrative Expenses

Costs associated with the general management of a business, such as salaries of senior executives, legal and financial charges, marketing, and office supplies.

Direct Materials

Materials that can be directly linked to the manufacturing of particular products or services.