Which of the Following Forms of Business Organization Limits the Liability

question 118

Multiple Choice

Which of the following forms of business organization limits the liability of owners?

• A) sole proprietorship
• B) general partnership
• C) corporation
• D) two person partnership

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Definitions:

Accumulated Depreciation

The aggregate sum of depreciation costs accounted for a fixed asset since its inception of use.

Equipment Account

A financial account that tracks the acquisition cost and depreciation of a company's equipment.

Ordinary Repairs

Routine maintenance and repair costs that are expensed in the period incurred to keep an asset in its normal operating condition.

Physically Extracted

The process of removing materials or resources from the natural environment through manual or mechanical means.