Accounting Fall Exam Prep

A business owned by one person

• Sole Proprietorship

• Partnership

• Corporation

A business owned by two or more people

• Sole Proprietorship

• Partnership

• Corporation

A business that has one or more owners

• Partnership

• Corporation

• Sole Proprietorship

A business that also has one or more owners

• Corporation

• Partnership

• LLC (limited liability company)

Which business is easy and inexpensive to form and dissolve

• Corporation

• Partnership

• Sole Proprietorship

Which business type has access to more capital

• Sole Proprietorship

• Partnership & Corporation

• LLC

Which business type has their business profits taxed at personal level

• Sole Proprietorship

• Partnership

• LLC

• All of the above

Which business type has more government regulations: complicated formation, may need attorney or accountant to set up and double taxation

• Partnership

• LLC

• Corporation

Name the agency that protects investors and the agency it relies on to generate ideas that become laws.

• SEC and FASB

• FASB and GAAP

• AICPA and PCAOB

The __________ protects investors, helps markets run smoothly, requires disclosures, has powers of enforcement, and relies on the FASB to generate ideas that become law.

• SEC

• AICPA

• IRS