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

Which type of business organization is entirely legally independent from its owners?

Limited liability partnership

Corporation

Partnership

Sole proprietorship

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Verified step by step guidance

Understand the concept of business organizations: Business organizations are structures established to conduct business activities. Common types include sole proprietorships, partnerships, limited liability partnerships, and corporations.

Define the key characteristics of each type: Sole proprietorships are owned by one person and are not legally separate from the owner. Partnerships involve two or more individuals sharing ownership and are also not legally independent from the owners. Limited liability partnerships provide some liability protection but are still tied to the owners.

Focus on corporations: Corporations are unique because they are legally independent entities. This means they have their own legal identity, separate from their owners (shareholders). They can own assets, incur liabilities, and enter contracts independently.

Explain why corporations are legally independent: The legal independence of corporations is established through incorporation laws. Shareholders have limited liability, meaning their personal assets are protected from the corporation's debts and obligations.

Conclude the reasoning: Based on the definitions and characteristics, the correct answer is 'Corporation,' as it is the only type of business organization entirely legally independent from its owners.