Section 1 Lab Exercise Solutions

Section 1 Lab Exercise Solutions - Section 1 Forms of...

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Section 1 – Forms of Business Ownership and the Role of Accounting SOLUTION 1. Use the following key to indicate which form of business is being described. Some may have more than one answer : A = Sole Proprietorship B = General Partnership C = Limited Liability Company D = C-Corporation E = S-Corporation a. __ C, D, E ____ The owners of these types of businesses have limited legal liability. b. __ A _________ Approximately 70% of all business are this type – yet it generates only 10% of total business revenue. c. ___ A, B ______ The owner/owners have unlimited legal liability. d. __ A _________ This type of business is the easiest to organize. e. __ D, E _______ The owners of these types of businesses are called “stockholders”. f. __ E _________ In addition to other requirements, one requirement for this type of business is that there must be 100 or fewer shareholders. g. __ B, C, D, E ___ For these types of businesses, profits are shared. h.
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Section 1 Lab Exercise Solutions - Section 1 Forms of...

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