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Match the Type of Business with Their Characteristics Below

question 42

Essay

Match the type of business with their characteristics below.
Type of Business
A.Corporation
B.Partnership
C.Sole proprietorship
D.Partnership and sole proprietorship


Definitions:

Quick Assets

Liquid assets that can be quickly converted into cash without significantly affecting their value, such as marketable securities and accounts receivable.

Acid-Test Ratio

A financial metric used to determine a company's short-term liquidity by comparing its most liquid assets (excluding inventory) against its short-term liabilities.

Just-In-Time Inventory System

A supply chain management strategy aimed at reducing inventory costs by receiving goods only as they are needed in the production process.

Acid-Test

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets without relying on the sale of inventory.

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