1.

Question :

(TCO A) Which of the following statements is CORRECT? One of the disadvantages of incorporating a business is that the owners then become subject to liabilities in the event the firm goes bankrupt. Sole proprietorships are subject to more regulations than corporations. In any type of partnership, every partner has the same rights, privileges, and liability exposure as every other partner. Sole proprietorships and partnerships generally have a tax advantage over many corporations, especially large ones. Corporations of all types are subject to the corporate income tax.

Student Answer:

Instructor Explanation:

Chapter 1 Explanation: incorrect Ch 1: d is correct, all others are

a: incorporating provides owners limited liability b: sole proprietorship has less regulation than corporation c: In limited partnerships certain partners can be designated general partners and others limited partners with differences in control and liability d. sole proprietorships and partnerships are taxed just once at owner level (pass-through of income to owners) whereas corporation earnings can be double or triple taxed depending on individual or corporate ownership of stock e. S-corps can elect to be taxed as proprietorship partnership or

Points Received: Comments:

0 of 10

2.

Question :

(TCO G) Which of the following statements is CORRECT? The statement of cash flows reflects cash flows from operations, but it does not reflect the effects of buying or selling fixed assets. The statement of cash flows shows where the firms cash is located; indeed, it provides a listing of all banks and brokerage houses where cash is on deposit.

Student Answer:

Classified - Internal use

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Classified - Internal use