Which Type of Business Organization Is Characterized by Limited Liability

question 47

Multiple Choice

Which type of business organization is characterized by limited liability?

• A) Corporation
• B) Proprietorship
• C) Partnership
• D) Corporation, proprietorship, and partnership

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Definitions:

Financing Activity

Transactions involving the flow of cash between a company and its owners, investors, or creditors, excluding operational and investing activities.

Statement of Cash Flows

A ledger statement which outlines how modifications in balance sheet accounts and revenue streams influence cash and cash equivalents, with the analysis broken down by operating, investing, and financing operations.

Parentheses

Punctuation marks used in writing to enclose additional information or clarify something without interrupting the main text.

Cash Payments

Transactions that involve the outlay of cash by a business for various purposes, including expenses, acquisitions, or debt repayments.