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ACCOUNTING NAF EXAM WITH 100%
CORRECT QUESTIONS AND ANSWERS |
GRADED A+ | NEW
Advantages of a sole proprietorship - Correct Answer-Easy
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 - Correct Answer-
Unlimited personal liability, Limited management expertise,
Limited access to capital, Extensive time commitments,
Difficult to sell, Limited life
Advantages of a partnership - Correct Answer-Easy 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 - Correct Answer-Unlimited
personal liability, Profit sharing, Potential disagreements
among partners, Difficult to sell, Limited life
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Advantages of a corporation - Correct Answer-Limited
personal liability, Management expertise, Easier to raise
capital, Easy to sell, Unlimited life
Disadvantages of a corporation - Correct Answer-More
government regulations, double taxation, absentee owners
Advantages of a LLC - Correct Answer-Limited personal
liability, Management expertise, Unlimited life, Business
profits taxed at personal level
Disadvantages of a LLC - Correct Answer-More government
regulations, absentee owners
IRS (Internal Revenue Service) - Correct Answer-A
government regulatory agency that collects taxes, powers of
enforcement, can levy fines, confiscate property, mandatory
relationship
SEC (Securities and Exchange Commission) - Correct
Answer-A 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
2
ACCOUNTING NAF EXAM WITH 100%
CORRECT QUESTIONS AND ANSWERS |
GRADED A+ | NEW
Advantages of a sole proprietorship - Correct Answer-Easy
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 - Correct Answer-
Unlimited personal liability, Limited management expertise,
Limited access to capital, Extensive time commitments,
Difficult to sell, Limited life
Advantages of a partnership - Correct Answer-Easy 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 - Correct Answer-Unlimited
personal liability, Profit sharing, Potential disagreements
among partners, Difficult to sell, Limited life
1
, 2
Advantages of a corporation - Correct Answer-Limited
personal liability, Management expertise, Easier to raise
capital, Easy to sell, Unlimited life
Disadvantages of a corporation - Correct Answer-More
government regulations, double taxation, absentee owners
Advantages of a LLC - Correct Answer-Limited personal
liability, Management expertise, Unlimited life, Business
profits taxed at personal level
Disadvantages of a LLC - Correct Answer-More government
regulations, absentee owners
IRS (Internal Revenue Service) - Correct Answer-A
government regulatory agency that collects taxes, powers of
enforcement, can levy fines, confiscate property, mandatory
relationship
SEC (Securities and Exchange Commission) - Correct
Answer-A 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
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