An Advantage of Proprietorships Is

question 212

Multiple Choice

An advantage of proprietorships is

• A) the ease with which they can be formed and dissolved.
• B) their ability to raise large amounts of equity capital.
• C) the fact that their profits are not taxed.
• D) the breadth of management expertise that comes from having a board of directors.

---

Definitions:

Perpetual FIFO Method

is an inventory valuation technique assuming that the first items purchased (First In) are the first ones sold (First Out), continuously updated for each transaction.

Inventory Flow

The process by which inventory moves through a business, from purchase and storage to sale.

Periodic Inventory System

An inventory accounting system where updates to inventory accounts occur at specific intervals, typically at the end of an accounting period.

LIFO

An inventory valuation method where the last items added to inventory are considered the first ones sold during a period of time; stands for Last-In, First-Out.