Evan Has Received Permission from His State to Form a Corporation

question 64

Multiple Choice

Evan has received permission from his state to form a corporation for his startup,expecting his liability would be limited to the amount of his investment.But his bank asked him to assume personal liability before it would grant him a business loan.Why would the bank make this demand?

• A)Evan did not invest enough into the business.
• B)Evan is the only stockholder.
• C)Evan has more assets than the business.
• D)Evan's business has no credit history.

Differentiate between various computing models and their business applications.

Acknowledge the role of data management and analytics in business decision-making.

Grasp the concept and utility of artificial intelligence and expert systems in enhancing business operations.

Understand different types of dividends and the financial implications of each type.

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Definitions:

Internal Control

Procedures and policies implemented by a firm to protect its assets, ensure accurate and reliable financial reporting, promote operational efficiency, and encourage adherence to laws and regulations.

Segregation of Duties

A principle in accounting and corporate governance that aims to reduce the risk of error and fraud by dividing responsibilities among different individuals or departments.

Accounts Receivable

Financial obligations of clients or customers towards a business for received goods or services that are awaiting payment.

Subsidiary Ledger

A subsidiary ledger is a group of similar accounts whose totals summarize into a single amount shown in the general ledger, aiding detailed financial analysis and tracking.