Management Accounting Information of a Company Is Primarily Used By

question 5

Multiple Choice

Management accounting information of a company is primarily used by:

• A)its customers to understand the pricing of the product.
• B)its creditors to understand the credibility of the business.
• C)its employees to plan and control operations.
• D)its investors to make their investment decisions.

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Definitions:

Business for Profit

Organizations that operate with the primary goal of earning financial returns for their owners or shareholders.

Limited Liability Corporation

A business structure that offers its owners protection from personal liability for the debts of the company, while allowing them to enjoy the tax and operational benefits of a partnership.

Sole Proprietorship

A simple business structure where a single individual owns, manages, and is responsible for all aspects of the business, including liabilities.

Partnership

A form of business where two or more people agree to contribute resources to start and operate a business together.