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Marcus Has Decided to Open an Auto-Detailing Business

question 13

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Marcus has decided to open an auto-detailing business.He will pick up an automobile from the client,take it to his parents' garage,detail it,and return it to the client.If he does all of the work himself and takes no legal steps to form a special organization,which type of business organization,in effect,has he chosen?


Definitions:

Accounts Receivable Period

The accounts receivable period measures the average number of days it takes for a company to collect payments after a sale has been made, indicating the efficiency of its credit and collection policies.

Receivables Period

The mean duration required for a company to collect payments from its customers for products or services supplied on credit.

Credit Policy Decisions

Strategic determinations made by a business regarding who qualifies for credit, the terms of credit, credit limits, and how to collect on overdue accounts.

Controller

A senior financial officer responsible for managing the accounting operations of a company.

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