TAMU ACCT 229 - Exam 1 Questions and Answers Graded A+

TAMU ACCT 229 - Exam 1 Questions and Answers Graded A+3 types of businesses sole proprietorshi p, partnership, corporation unlimited liability sole proprietorship & partnership limited liability corporation Sole Proprietorship one owner advantage: easy to form separate entity for accounting purposes not a separate entity for legal purposes or tax purposes Partnership two or more owners separate entity for accounting purposes not a separate entity for legal or tax purposes Corporations business incorporated under the laws of a particular state. Advantages: limited liability, continuity of life, ease in transfer of stock (ownership), opportunity to raise large amounts of money by selling shares of stock to a large number of people.