Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Business Organization

Financial Accounting

1. Introduction to Accounting

Business Organization

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Multiple Choice

As students think about a career in the business world today, which of the following forms of business organization offers owners limited liability protection?

General partnership

Sole proprietorship

Corporation

Partnership

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Verified step by step guidance

Understand the concept of limited liability: Limited liability means that the owners (shareholders) of a business are not personally responsible for the debts and obligations of the business beyond their investment in the company.

Review the characteristics of each business organization type: Sole proprietorships and general partnerships do not offer limited liability protection. In these forms, owners are personally liable for the debts of the business.

Recognize that corporations are distinct legal entities: A corporation is a separate legal entity from its owners (shareholders). This separation provides limited liability protection, meaning shareholders are only liable up to the amount they have invested in the corporation.

Understand why partnerships are not the correct answer: While partnerships can have variations like limited partnerships (LPs) or limited liability partnerships (LLPs), a general partnership does not provide limited liability protection to its partners.

Conclude that the correct answer is 'Corporation': Among the options provided, only a corporation offers owners limited liability protection, making it the correct choice.