Which of the Following Is an Advantage of Corporations Relative

question 103

Multiple Choice

Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?

• A)Reduced legal liability for investors
• B)Harder to transfer ownership
• C)Lower taxes
• D)Most common form of organization

Explain the significance of assumptions in accounting such as the going concern assumption, the monetary unit assumption, and the economic entity assumption.

Understand the concept of revenues and how they affect equity.

Identify the obligations of a business and how they are represented in accounting.

Understand the basic financial statements and their purposes.

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Definitions:

Economic Events

Transactions and occurrences that have a direct impact on the financial position and performance of a company, including both internal and external activities.

Sole Proprietorship

A business structure where an individual owns the company and is personally responsible for its debts.

Relevant Accounting Information

Information that is capable of making a difference in the decision-making process by being timely and having predictive and/or feedback value.

Operating Cycle

The period of time it takes for a company to purchase inventory, sell products, and collect cash from customers.