A Business Form Devised to Avoid the Burdens of Corporate

question 23

Multiple Choice

A business form devised to avoid the burdens of corporate regulation, particularly the formerly widespread prohibition denying corporations the power to own and deal in real estate, and used primarily for asset securitization ventures is the:

• A) limited liability limited partnership.
• B) limited partnership.
• C) limited liability company.
• D) business trust.

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Definitions:

Contra Asset

An account on a company's balance sheet that reduces the total amount of the asset accounts, often used to account for depreciation or allowances for bad debts.

Uncollectible Receivables

Financial claims that are recognised as losses because they cannot be collected, typically due to debtor default.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's accounts receivable that may not be collected.

Receivable

An amount due to be received by a company for goods or services provided on credit; an asset on the balance sheet.