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

Nordstrom, Inc. operates department stores in numerous states. Which type of business organization structure is Nordstrom, Inc. most likely to use?

Limited Liability Partnership (LLP)

Sole Proprietorship

Corporation

Partnership

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Verified step by step guidance

Understand the different types of business organization structures: Sole Proprietorship, Partnership, Limited Liability Partnership (LLP), and Corporation. Each has distinct characteristics in terms of ownership, liability, and operational structure.

Analyze the nature of Nordstrom, Inc.'s operations. It operates department stores in numerous states, indicating a large-scale business with significant assets, employees, and operations.

Consider the legal and financial implications of each structure. For example, Sole Proprietorship and Partnership are typically used for smaller businesses and do not provide limited liability protection. LLPs are often used for professional services firms, such as law or accounting firms.

Recognize that a Corporation is the most suitable structure for large businesses like Nordstrom, Inc. Corporations provide limited liability protection to shareholders, allow for raising capital through stock issuance, and are subject to corporate taxation.

Conclude that Nordstrom, Inc. is most likely organized as a Corporation due to its size, complexity, and the need for limited liability protection and access to capital markets.