TAMU ACCT 229 Exam 1Questions And Answers 100% Solved

TAMU ACCT 229 Exam 1Questions And Answers 100% Solved 3 types of businesses - sole proprietorship, 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. 3 types of business activities - financing, investing, operating Operating Activities - everyday activities -sell inventory, pay employees