Which of the Following Has a Restriction on the Number

question 128

Multiple Choice

Which of the following has a restriction on the number of owners, members, or stockholders?

• A) S-corporation
• B) Not-for-profit corporation
• C) Open corporation
• D) Limited-liability company
• E) Cooperative

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Definitions:

Constraint In Accounting

In accounting, constraints involve the limitations or boundaries that must be considered when preparing financial statements, such as materiality, cost-benefit considerations, and timeliness.

Measurement Principle

A fundamental accounting principle that dictates how transactions should be recorded based on their actual cost in financial statements.

Fair Value

The estimated market price of an asset or liability, reflecting the amount at which it could be bought or sold in a current transaction between willing parties.