The Form of a Business Organization That Is Not Affected

question 4

Multiple Choice

The form of a business organization that is not affected by the withdrawal or death of an owner and can continue forever is

• A) the sole proprietorship.
• B) the partnership.
• C) the corporation.
• D) the nonprofit organization.

---

Definitions:

Actuarial Assumptions

The hypotheses about demographic, financial, and other variables that actuaries use to calculate the liabilities and expenses of insurance and pension plans.

GAAP Standards

Generally Accepted Accounting Principles; a set of rules and standards used for financial reporting and accounting in the United States.

Pension Asset

Refers to the resources set aside by a company in a pension fund to meet future pension liabilities to its employees.

Projected Benefit Obligation

A measurement of the present value of future pension benefits earned to date as estimated by actuaries, used in accounting for pension plans.