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 are two primary advantages of the corporate form of business organization?

Simple formation process and lack of government regulation

Limited liability for shareholders and ease of transferring ownership

Direct management by all shareholders and exemption from taxes

Unlimited liability for owners and limited access to capital

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Verified step by step guidance

Understand the corporate form of business organization: A corporation is a legal entity separate from its owners, providing certain advantages compared to other business structures like sole proprietorships or partnerships.

Identify the concept of limited liability: In a corporation, shareholders are only liable for the amount they have invested in the company. Their personal assets are protected from corporate debts and liabilities.

Examine the ease of transferring ownership: Shares of a corporation can be bought and sold easily, allowing ownership to be transferred without affecting the operations of the business.

Eliminate incorrect options: Review the other choices provided in the problem. For example, 'Simple formation process and lack of government regulation' is incorrect because corporations often have a complex formation process and are subject to significant government regulation.

Conclude with the correct advantages: The two primary advantages of the corporate form of business organization are 'Limited liability for shareholders' and 'Ease of transferring ownership,' as these are key features that distinguish corporations from other business structures.