In Which of the Following Organization Forms Are the Owners

question 45

Multiple Choice

In which of the following organization forms are the owners' legal responsibility for the debt of the business limited to the amount they invested in the business?

• A) Sole proprietorship
• B) Corporation
• C) Partnership
• D) Cooperative

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Definitions:

Functions of Money

Money serves as a medium of exchange, a unit of account, a store of value, and occasionally, a standard of deferred payment.

Fractional Reserve Banking

A banking system in which banks keep a fraction of deposits as reserves and use the remainder for loans.

Bank Liabilities

Financial obligations owed by a bank to its depositors, creditors, and other parties.

Bank Assets

Resources owned by a bank, including loans, securities, cash, and property, that have economic value and can be used to meet its liabilities.