Assume That You Are Starting a Business

question 23

Multiple Choice

Assume that you are starting a business.Further, assume that the business is expected to grow very quickly and a great deal of capital will be needed soon.After reading the chapter, which type of business organisation would you choose?

• A)Corporation
• B)General partnership
• C)Limited liability company
• D)Limited partnership

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Definitions:

Factory Overhead

All manufacturing-related costs excluding those for direct labor and direct materials.

Direct Labor Costs

Expenses associated with employees who directly contribute to the production of goods or services.

Work in Process Inventory

Goods partially completed by a manufacturer but not yet ready for sale.

Administrative Expenses

Costs associated with the general management and administration of an organization, rather than production or sales.