When Determining a Form of Business Organization, All of the Following

question 41

Multiple Choice

When determining a form of business organization, all of the following are considered EXCEPT

• A) who owns the firm.
• B) the owners' risks.
• C) the tax ramifications.
• D) the physical location of the business.

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Definitions:

Legal Obligations

Commitments or duties that are enforced by law, requiring entities or individuals to act or refrain from acting in a certain way.

Nonlegal Obligations

Obligations that are not enforceable by law but may be morally or ethically binding.

GAAP

Generally Accepted Accounting Principles (GAAP) are a set of rules, standards, and procedures that companies must follow when compiling their financial statements in the United States.

Unconditional

Unconditional means not subject to any conditions or limitations; absolute.