A Business That Is Operated by a Board of Directors

question 28

Multiple Choice

A business that is operated by a board of directors is called a __________.

• A) sole proprietorship
• B) partnership
• C) limited partnership
• D) corporation

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Definitions:

Direct Method

A way of preparing the cash flow statement where actual cash flow information from the company's operations is used, directly showing major classes of gross cash receipts and payments.

Statement Of Cash Flows

A financial statement that provides financial information about the cash receipts and cash payments of a business for a specific period of time.

Cash Receipts

The collection of money, including coins, notes, and electronic transactions, received by a business.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence over that company but not full control or ownership.