10 Questions
Which form of business organization is owned by an individual who is personally liable for the venture's liabilities?
Sole Proprietorship
What is the term for the personal obligation to pay a venture's liabilities not covered by the venture's assets?
Unlimited liability
In a partnership, how are the partners jointly treated in legal action?
Equally as a group
What type of partnership allows subsets of partners to be the object of legal action related to the partnership?
Limited Liability Partnership
Which form of business organization limits limited partner liabilities in a partnership?
Limited Partnership
Which one of the following is a basic accounting concept that reflects the usage and wearing out of a fixed asset?
Accumulated Depreciation
Which financial statement provides a snapshot of a venture's financial position as of a specific date?
Balance Sheet
What is the formula for calculating the total assets of a venture?
Total Assets = Total Liabilities + Owners' Equity
Which one of the following is NOT an example of an asset?
Accounts Payable
What are Generally Accepted Accounting Principles (GAAP)?
Guidelines for presenting accounting information
Test your knowledge on different forms of business organization in this quiz. Learn about sole proprietorships, partnerships, corporations, and limited liability companies (LLCs). Identify the characteristics and differences between each form to better understand how to organize and finance a new venture.
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