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Accounting
Chapter 1
| Question | Answer |
|---|---|
| Sole Proprietorship | -simple to establish -owner controlled -tax advantages |
| Partnership | -simple to establish -shared control -broader skills and resources -tax advantages |
| Corporation | -easier to transfer ownership -easier to raise funds -no personal liability |
| Three Forms of Business Organization | 1. Sole Proprietorship 2. Partnership 3. Corporation |
| What are internal users? | -work for the company -finance, marketing, management, human resources |
| What are external users? | -investors and creditors |
| Three Principal Types of Business Activity | 1. Financing 2. Investing 3. Operating |
| Accounting Information System | keeps track of the results of each of these business activities |