Match the Following Characteristics with the Form of Business Entity

question 167

Multiple Choice

Match the following characteristics with the form of business entity that best describes it. Each may be used more than once.
-Generates 90% of business revenues

• A)Proprietorship
• B)Partnership
• C)Corporation
• D)Limited liability company (LLC)

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Definitions:

Selling Price

The price at which an item or service is offered to buyers.

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.

Expenses

Outflows or using up of assets as part of operations of a business to generate revenue.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating how much revenue contributes toward covering fixed costs and generating profit.