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 business ownership structures is the simplest and easiest to set up?

Corporation

Limited liability company (LLC)

Sole proprietorship

Partnership

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Verified step by step guidance

Understand the concept of business ownership structures: Business ownership structures determine how a business is legally organized, taxed, and managed. Common types include sole proprietorship, partnership, corporation, and limited liability company (LLC).

Define sole proprietorship: A sole proprietorship is a business owned and operated by one individual. It is the simplest and easiest structure to set up because it does not require formal registration or complex legal agreements.

Compare sole proprietorship to other structures: Unlike corporations or LLCs, sole proprietorships do not require articles of incorporation, operating agreements, or board meetings. Partnerships require agreements between multiple owners, while corporations and LLCs involve more legal and tax complexities.

Highlight the advantages of sole proprietorship: Sole proprietorships are straightforward to establish, have minimal regulatory requirements, and allow the owner to have complete control over the business. However, they also come with unlimited personal liability for business debts.

Conclude why sole proprietorship is the correct answer: Given its simplicity, lack of formal setup requirements, and ease of operation, sole proprietorship is the most straightforward business ownership structure to establish compared to corporations, LLCs, or partnerships.