Accounting NAF Exam Questions And Answers (Verified And Updated)

Accounting NAF Exam Questions And Answers (Verified And Updated) Advantages of a sole proprietorship - answerEasy and inexpensive to form and dissolve, No profit sharing, Complete control of company, Few government regulations, Business profits taxed at personal level. Disadvantages of a sole proprietorship - answerUnlimited personal liability, Limited management expertise, Limited access to capital, Extensive time commitments, Difficult to sell, Limited life Advantages of a partnership - answerEasy to form, Access to more capital, More management expertise, Few government regulations, Business profits taxed at partner level, Easy to change owners Disadvantages of a partnership - answerUnlimited personal liability, Profit sharing, Potential disagreements among partners, Difficult to sell, Limited life Advantages of a corporation - answerLimited personal liability, Management expertise, Easier to raise capital, Easy to sell, Unlimited life Disadvantages of a corporation - answerMore government regulations, double taxation, absentee owners Advantages of a LLC - answerLimited personal liability, Management expertise, Unlimited life, Business profits taxed at personal level Disadvantages of a LLC - answerMore government regulations, absentee owners IRS (Internal Revenue Service) - answerA government regulatory agency that collects taxes, powers of enforcement, can levy fines, confiscate property, mandatory relationship SEC (Securities and Exchange Commission) - answerA government regulatory agency that protects investors, Helps markets run smoothly, Requires disclosures, Relies on Financial Accounting Standards Board to generate ideas that become law, Powers of enforcement PCAOB (Public Company Accounting Oversight Board) - answerA government regulatory agency that Protects investors and the general public, Oversees audits of public companies