Reference no: EM132827747

Problem 1: Which of the following is NOT a characteristic of a for-profit entity?

a. It has an ownership structure that can be purchased and sold

b. It primary objective is to provide a social and community benefit

c. It's primary objective is to make a profit

d. It requires economic capital to operate

Problem 2: What is NOT a characteristic of a limited liability company?

a. It is a separate legal entity to its owners.

b. The owners have unlimited liability, i.e. they are liable for anything that happens in the entity.

c. It has an indefinite life.

d. It is owned by shareholders.

Problem 3: Which of the following is not an indicator of a reporting entity?

a. The entity is politically or economically important.

b. The entity receives government grants.

c. The entity is managed by individuals who are not owners of the entity.

d. The entity is considered large in terms of sales, assets, borrowings, employees and customers.