Entrepreneurs Should Take Great Care When Choosing a Form of Legal

question 3

Multiple Choice

Entrepreneurs should take great care when choosing a form of legal ownership because once one form is chosen, it is ________ to change it to another form.

• A)impossible
• B)very difficult
• C)easy
• D)rather embarrassing

---

Definitions:

Assets

Resources owned by a company or individual, including cash, inventory, properties, and equipment, that are expected to provide future economic benefits.

Liabilities

Financial obligations a company owes to outside parties, such as loans, accounts payable, and mortgages.

Assets

Company-owned valuables that offer economic benefits and are expected to provide future profit.

Revenue

The total amount of money received by a company from its business activities, such as sales of goods or services, before any expenses are subtracted.