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

Two doctors who join forces in business typically form which type of business organization?

Sole proprietorship

Partnership

Corporation

Limited liability company (LLC)

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Verified step by step guidance

Understand the types of business organizations listed in the problem: Sole proprietorship, Partnership, Corporation, and Limited Liability Company (LLC).

Review the characteristics of each type of business organization: Sole proprietorship involves a single owner, Partnership involves two or more individuals sharing ownership, Corporation is a separate legal entity owned by shareholders, and LLC combines features of partnerships and corporations with limited liability protection.

Consider the scenario described in the problem: Two doctors joining forces in business. This implies shared ownership and decision-making, which aligns with the definition of a Partnership.

Eliminate options that do not fit the scenario: Sole proprietorship is not applicable because it involves only one owner, Corporation is typically for larger businesses with shareholders, and LLC is a hybrid structure that may not be the default choice for two individuals starting a business.

Conclude that the most appropriate type of business organization for two doctors joining forces is a Partnership, based on the shared ownership and collaboration described.