Factors Affecting Organizational Form Indicate whether each of the following is likely to be important (I) or
Question:
Factors Affecting Organizational Form Indicate whether each of the following is likely to be important
(I) or unimportant (U) in deciding whether a new business should be established as a sole proprietorship, partnership, or corporation:
a. The number of individuals who will hold ownership.
b. The number of locations nationally and internationally where products will be manufactured.
c. The average age of the owners.
d. The average sale price per unit of products sold.
e. The need to generate a large amount of cash through external funding sources.
f. The protection of personal assets of owners from creditors.
g. The ability of owners to be able to continue to manage the company.
h. The number of days it is expected to take to collect payment from customers.
Step by Step Answer:
Financial Accounting A Decision Making Approach
ISBN: 9780471328230
2nd Edition
Authors: Thomas E. King, Valdean C. Lembke, John H. Smith