What Type of Liability Means That Business Damages And/or Debts

question 2

Multiple Choice

What type of liability means that business damages and/or debts can also be attached to the personal assets of the owners?

• A) informal liability
• B) limited liability
• C) unlimited liability
• D) funding liability

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Definitions:

Financial Accounting Standards Board

An independent nonprofit organization responsible for establishing accounting and financial reporting standards for companies and nonprofit organizations in the United States.

Certified Public Accountants

Licensed professionals who offer financial services such as auditing, tax preparation, and financial planning, and must adhere to professional standards.

Accounting Principles

The rules and guidelines that companies must follow when reporting financial data and accounting information.

Proprietorships

Business entities owned by one individual, where there is no legal distinction between the owner and the business.