Who Are The Users of Accounting? 6 (Six) Groups of People That Uses Accounting Information What Is Accounting Information?
Who Are The Users of Accounting? 6 (Six) Groups of People That Uses Accounting Information What Is Accounting Information?
Who Are The Users of Accounting? 6 (Six) Groups of People That Uses Accounting Information What Is Accounting Information?
The owner faces unlimited liability; meaning, the creditors of the business may go after
the personal assets of the owner if the business cannot pay them.
The owners (stockholders) enjoy limited liability but have limited involvement in the
company's operations. The board of directors, an elected group from the stockholders,
controls the activities of the corporation.
In addition to those basic forms of business ownership, these are some other types of
organizations that are common today:
4. Limited Liability Company (LLCs) in the USA, are hybrid forms of business that
have characteristics of both a corporation and a partnership. An LLC is not incorporated;
hence, it is not considered a corporation.
Nonetheless, the owners enjoy limited liability like in a corporation. An LLC may elect to
be taxed as a sole proprietorship, a partnership, or a corporation.