Select the Type of Business That Is Most Likely to Obtain

question 178

Multiple Choice

Select the type of business that is most likely to obtain large amounts of resources by issuing stock.

• A) Partnership
• B) Corporation
• C) Proprietorship
• D) None are correct.

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Definitions:

Credit Entries

Accounting entries that increase liability or equity accounts or decrease asset or expense accounts.

Cash Account

An account recording all transactions involving cash inflows and outflows.

Owner's Capital

The amount of money and other assets owned by the owner of a company that has been invested in the business.

Net Loss

Occurs when a company's total expenses exceed its total revenues during a specific period, resulting in negative earnings.