The Ability to Share Work and Share Risk Is an Advantage

question 170

Multiple Choice

The ability to share work and share risk is an advantage for

• A)sole proprietorships and partnerships.
• B)sole proprietorships.
• C)sole proprietorships and corporations
• D)partnerships.

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Definitions:

Variable Cost

A cost that changes in direct proportion to changes in the level of business activity or output.

Fixed Cost

A cost that does not vary with the level of production or sales, such as rent, property taxes, and salaries.

Least-Squares Regression

A statistical technique used to determine the line that best fits a set of data points, minimizing the sum of the squares of the differences between the observed and estimated values.

Variable Cost

Expenses that change in direct proportion to the amount of production or the quantity of output generated.