Which of the Following Is an Advantage of Starting a New

question 129

Multiple Choice

Which of the following is an advantage of starting a new business as a partnership?

• A)The owners have limited personal liability.
• B)Compared to a corporation,a partnership has fewer government rules and regulations to comply with.
• C)Business profits are not taxed.
• D)A partnership can easily attain additional funding.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, resulting in a net income or loss.

Post-closing Trial Balance

A list of all accounts and their balances after closing entries are made, serving as a check to ensure that debits equal credits.

Permanent Account Balances

The ongoing balances in balance sheet accounts that are carried over from one accounting period to the next.

Temporary Account Balances

Accounts that are closed at the end of each accounting period, including revenues, expenses, and dividends accounts.