What Type of Business Is the Easiest to Set Up

question 113

Multiple Choice

What type of business is the easiest to set up?

• A)sole proprietorship
• B)partnership
• C)corporation
• D)There is no difference in the ease of establishment.

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Definitions:

Total Cost

The aggregate of expenses related to the manufacturing of products or provision of services, which includes costs that stay the same as well as those that vary.

Fixed Costs

Expenses that do not vary with the level of production or business activity, such as rent, salaries, and insurance premiums, remaining constant regardless of output.

Average Total Costs

The total costs of production divided by the quantity produced, representing the cost per unit of output.

Average Variable Costs

Represent the total variable costs (costs that change with production volume) divided by the number of units produced.