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 type of business organization is most ideal for a single owner seeking low personal financial risk?

Sole proprietorship

Corporation

Limited liability partnership (LLP)

Partnership

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Verified step by step guidance

Understand the key characteristics of each type of business organization listed in the problem: Sole proprietorship, Corporation, Limited Liability Partnership (LLP), and Partnership.

Evaluate the financial risk associated with each type of business organization. For example, sole proprietorships and partnerships typically involve unlimited personal liability, meaning the owner's personal assets are at risk.

Learn about corporations, which offer limited liability protection to their owners (shareholders). This means the owner's personal financial risk is minimized, as their liability is limited to their investment in the corporation.

Understand the concept of Limited Liability Partnerships (LLPs), which provide limited liability protection to partners, but are generally more suitable for professional services firms rather than single owners.

Determine that for a single owner seeking low personal financial risk, a corporation is the most ideal choice due to its limited liability structure, which protects personal assets from business debts and obligations.