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 form of business organization contains the feature known as limited liability?

General partnership

Sole proprietorship

Corporation

Partnership

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Verified step by step guidance

Step 1: Understand the concept of limited liability. Limited liability means that the owners of a business are not personally responsible for the debts and liabilities of the business beyond their investment in the company.

Step 2: Review the characteristics of each business organization type mentioned in the problem: General partnership, sole proprietorship, corporation, and partnership.

Step 3: Analyze the general partnership and sole proprietorship. Both of these forms of business do not offer limited liability, as the owners are personally responsible for the debts and obligations of the business.

Step 4: Examine the corporation. A corporation is a separate legal entity, and its owners (shareholders) have limited liability, meaning their personal assets are protected from the company's debts and liabilities.

Step 5: Confirm that the correct answer is 'Corporation,' as it is the only form of business organization listed that provides the feature of limited liability.