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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is a disadvantage of a hybrid form of business ownership, such as an LLC or LLP?

Unlimited personal liability for all owners

Inability to have more than one owner

Limited ability to raise capital compared to corporations

Double taxation of profits

Previous problemNext problem

Verified step by step guidance

Understand the concept of hybrid forms of business ownership, such as LLC (Limited Liability Company) or LLP (Limited Liability Partnership). These structures combine features of corporations and partnerships, offering limited liability to owners while maintaining operational flexibility.

Review the advantages of LLCs and LLPs, such as limited liability protection for owners, pass-through taxation (avoiding double taxation), and flexibility in management structure.

Identify the disadvantages of LLCs and LLPs. One key disadvantage is their limited ability to raise capital compared to corporations, as they cannot issue stock to attract investors.

Compare this disadvantage to the other options provided in the question. For example, LLCs and LLPs do not have unlimited personal liability for all owners, nor are they restricted to having only one owner. Additionally, they avoid double taxation of profits due to pass-through taxation.

Conclude that the correct answer is 'Limited ability to raise capital compared to corporations,' as this is a recognized disadvantage of hybrid business forms like LLCs and LLPs.