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

4. Merchandising Operations

Service Company vs. Merchandising Company

Financial Accounting

4. Merchandising Operations

Service Company vs. Merchandising Company

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Multiple Choice

Which of the following disadvantages is unique to partnerships, and which is shared by all types of business organizations?

Double taxation is unique to partnerships; unlimited liability is shared by all types.

Unlimited liability is unique to partnerships; limited life is shared by all types.

Unlimited liability is unique to partnerships; taxation is shared by all types.

Limited life is unique to partnerships; double taxation is shared by all types.

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Verified step by step guidance

Step 1: Understand the concept of 'unlimited liability' in partnerships. Unlimited liability means that the partners are personally responsible for the debts and obligations of the business, which is unique to partnerships compared to other business structures like corporations.

Step 2: Learn about 'limited life' in partnerships. Limited life refers to the fact that a partnership may dissolve upon the death, withdrawal, or incapacity of a partner, which is also unique to partnerships.

Step 3: Explore the concept of 'double taxation.' Double taxation occurs when corporate profits are taxed at the corporate level and then again at the individual level when distributed as dividends. This is not applicable to partnerships, as partnerships are taxed only at the individual level.

Step 4: Compare taxation across business organizations. Taxation is shared by all types of business organizations, but the method of taxation differs. Partnerships are taxed at the individual level, while corporations may face double taxation.

Step 5: Analyze the options provided in the problem. Based on the definitions and characteristics of partnerships, the correct answer is: 'Unlimited liability is unique to partnerships; taxation is shared by all types.'