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 is an advantage of general partnerships?

Ownership is easily transferred to outsiders

Ease of formation and low start-up costs

Double taxation of profits

Limited liability for all partners

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Verified step by step guidance

Step 1: Understand the concept of a general partnership. A general partnership is a business structure where two or more individuals share ownership, responsibilities, and liabilities. It is distinct from other business structures like corporations or limited liability companies.

Step 2: Analyze the advantages of general partnerships. One key advantage is the ease of formation, as it typically requires fewer formalities and legal documentation compared to corporations. Additionally, start-up costs are generally lower.

Step 3: Compare the options provided in the question. Evaluate each statement to determine which aligns with the characteristics of general partnerships. For example, ownership transfer to outsiders is not typically easy in general partnerships, and double taxation does not apply since profits are taxed at the individual partner level.

Step 4: Focus on the correct answer: 'Ease of formation and low start-up costs.' This is a recognized advantage of general partnerships, as they are simpler and less expensive to establish compared to other business structures.

Step 5: Eliminate incorrect options. General partnerships do not offer limited liability for all partners; instead, partners share unlimited liability for the debts and obligations of the business. This helps clarify why the correct answer is 'Ease of formation and low start-up costs.'