ACCT 229 TAMU Unit 1 questions with correct answers

business CORRECT ANSWER all activities necessary to provide the members of an economic system with goods and services 3 forms of business organization CORRECT ANSWER -sole proprietorship -partnership -corporation sole proprietorship CORRECT ANSWER one owner advantage: easy to form disadvantage: unlimited liability by the owner partnership CORRECT ANSWER two or more owners; profits or losses are divided among the owners advantage: easy to form disadvantage: unlimited liabilitiy corporation CORRECT ANSWER business incorporated under the laws of a particular state. must file a charter and bylaws with the state. board of directors make decisions, shareholders all have partial ownership disadvantage: startup effort advantages of corporation CORRECT ANSWER -limited liability for all owners -continuity of life - theoretically goes on forever -ease in transfer of ownership (stock) -can raise large amounts of money throug