Partnership-owned by two or more people, called partners, who are subject to unlimited liability. The business is not subject to an income tax but the owners are responsible for personal income tax on the net income of the entity. Corporation-a business that is a separate legal entity whose owners are called shareholders or stockholders. These owners have limited liability. The entity is responsible for a business income tax and the owners are responsible for personal income tax on profits that are distributed to them in the form of dividends.
Ethics are crucial in accounting.
Ethics are beliefs that separate right from wrong or accepted standards of good and bad behavior. Ethical behavior is important in all successful organizations. Ethical behavior is necessary in accounting if the information it provides is to be trusted. The ethical challenge is to make ethical decisions. Social responsibility is an increasing organizational concern.