In Deciding on a Legal Form of Organization, You Should

question 56

Multiple Choice

In deciding on a legal form of organization, you should ask yourself all of the following questions except______________.

• A)do you want to share the profits with others
• B)do you have all the skills needed to run the business
• C)how many employees will you hire
• D)what are your financing needs

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Definitions:

Operating Cash Flow

The cash generated by a company's normal business operations, indicating whether a company is able to generate enough positive cash flow to maintain and grow its operations.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up over time.

Operating Cash Flow

The amount of cash generated by a company's normal business operations.

Contribution Margin

The amount by which sales revenue exceeds variable costs, used to cover fixed costs and to generate profit.