An Unincorporated Association of Two or More Persons to Carry

question 77

Multiple Choice

An unincorporated association of two or more persons to carry on a business for profit as co-owners is a(n) :

• A)Partnership
• B)Proprietorship
• C)Contractual company
• D)Mutual agency
• E)Voluntary organization

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Definitions:

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales volume, indicating how a change in sales will affect profits.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Contribution Margin Ratio

The percentage of sales that exceeds variable production costs, indicating how much of each sales dollar is available to cover fixed costs and generate profit.

Variable Expenses

Expenses that vary directly with changes in business activities or production levels, similar to variable costs, including items like shipping fees and sales commissions.