Which of the Following Could Explain Why a Business Might

question 35

Multiple Choice

Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership?

• A) Corporations generally find it relatively difficult to raise large amounts of capital.
• B) Less of a corporation's income is generally subjected to taxes than would be true if the firm were a partnership.
• C) Corporate shareholders escape liability for the firm's debts, but this factor may be offset by the tax disadvantages of the corporate form of organization.
• D) Corporate investors are exposed to unlimited liability.
• E) Corporations generally face relatively few regulations.

Recognize cash flow reporting requirements for specific transactions under current GAAP.

Analyze the significance of discrepancies between net income and net cash flows from operating activities.

Identify strategies for managing and manipulating cash flow reporting.

Understand the treatment of non-cash financing and investing activities in the cash flow statement.

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Definitions:

Navigate

To move or travel through different parts of a software application, document, or dataset.

Calendar Picker

An interface control that allows users to select dates through a visual calendar display, often used in forms for inputting date information.

Date/Time Field

A database or form field designated for storing dates and/or times, often allowing for operations like sorting and filtering based on time.

Lookup Wizard

A feature in database and spreadsheet software that helps users create a lookup field to find matching values in a table or range.