A Very Important Consideration in Picking a Legal Form of Business

question 60

Multiple Choice

A very important consideration in picking a legal form of business is

• A) how long you plan to run the business
• B) How much legal liability you are willing to accept
• C) How successful you believe your business will be
• D) How many competitors you expect to have

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Definitions:

Semiannually

Refers to an event or action that occurs twice a year.

Sold Bonds

The act of a company or government issuing bonds to investors in exchange for capital, representing a long-term borrowing.

Common Stock

A type of security that represents ownership in a corporation, with holders entitled to vote on corporate matters and receive dividends.

Journal Entries

Records of financial transactions in the accounting system, marked by debits and credits to maintain the balance of accounts.