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 of the following is an example of a disadvantage associated with a partnership?

Unlimited liability for partners

Easy transfer of ownership

Limited access to capital

Double taxation of profits

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Verified step by step guidance

Understand the concept of a partnership: A partnership is a business structure where two or more individuals share ownership, profits, and liabilities. It is distinct from corporations and sole proprietorships.

Review the disadvantages of a partnership: Partnerships often have disadvantages such as unlimited liability for partners, limited access to capital, and potential conflicts between partners.

Analyze the options provided: Evaluate each option to determine if it aligns with the disadvantages of a partnership. For example, 'Unlimited liability for partners' is a key disadvantage because partners are personally responsible for the debts of the business.

Eliminate incorrect options: 'Easy transfer of ownership' is not a disadvantage of a partnership; in fact, transferring ownership in a partnership can be complex. Similarly, 'Double taxation of profits' is a disadvantage of corporations, not partnerships.

Select the correct answer: Based on the analysis, identify 'Unlimited liability for partners' as the correct example of a disadvantage associated with a partnership.