Which of the Following Types of Business Organization Have Limited

question 203

Multiple Choice

Which of the following types of business organization have limited liability? I. proprietorship
II) partnership
III) corporation

• A) I, II only
• B) II, III only
• C) III only
• D) I, II, III

Understand the principles of accounting and the equation.

Identify different business types and their characteristics.

Determine the concepts associated with the ratio of liabilities to stockholders' equity.

Match business types to specific examples of businesses.

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Definitions:

Significant Change

A major alteration or transformation in a situation, process, or condition.

Activity Depreciation Method

A method of calculating the depreciation of an asset based on its usage, activities, or units of production rather than the passage of time.

Depreciation Expense

The allocated reduction in the carrying amount of a tangible asset over its useful life, reflecting wear and tear, obsolescence, or other declines in value.

Estimated Life

The anticipated duration for which an asset is expected to be functional and economically viable, dictating its depreciation schedule.