Which Type of Business Organization Exposes Its Owner(s)to Unlimited Liability

question 84

Multiple Choice

Which type of business organization exposes its owner(s) to unlimited liability?

• A)corporation
• B)partnership
• C)sole proprietorship
• D)Two of these are correct.

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Definitions:

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all recognized income and expenses, both realized and unrealized.

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and adjusted thereafter for the post-acquisition changes in the investee's net assets.

Common Shares

Equity securities that represent ownership interests in a corporation, including voting rights and dividends.

Net Income

The amount of profit left after all operating expenses, taxes, and other costs have been subtracted from total revenue.