An Organization That Is Independently Owned,operated,and Financed; Has Fewer Than

question 76

Multiple Choice

An organization that is independently owned,operated,and financed; has fewer than 100 employees; and does not necessarily engage in any new or innovative practices is known as a(n) ________.

• A)small business
• B)entrepreneurial venture
• C)small holding company
• D)subsidiary

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Definitions:

Internal Users

Internal users are individuals within an organization who use financial information to make decisions, including managers, employees, and owners.

External Users

Individuals or organizations outside a company who use its financial statements for decision-making purposes, such as investors, creditors, and regulatory agencies.

Accounting Information

Financial data and reports generated from the accounting system of a business, used for decision-making and financial analysis.

Limited Liability Company (LLC)

A business form consisting of one or more persons or entities filing an operating agreement with a state to conduct business with limited liability to the owners, yet treated as a partnership for tax purposes.