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 offers limited legal liability to its owners, making it advantageous for small businesses seeking to raise capital?

Corporation

Unlimited liability company

General partnership

Sole proprietorship

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Verified step by step guidance

Understand the concept of 'limited legal liability': This means that the owners of the business are not personally responsible for the debts and obligations of the business beyond their investment in the company.

Review the characteristics of each type of business organization mentioned in the problem: Corporation, Unlimited liability company, General partnership, and Sole proprietorship.

Analyze the key feature of a corporation: A corporation is a separate legal entity from its owners (shareholders), and it provides limited liability protection to its owners. This means shareholders are not personally liable for the corporation's debts.

Compare the other options: Unlimited liability companies, general partnerships, and sole proprietorships do not offer limited liability protection. In these structures, owners may be personally responsible for business debts and obligations.

Conclude that the type of business organization offering limited legal liability to its owners, making it advantageous for small businesses seeking to raise capital, is a corporation.