Which of the Following Is Not a Characteristic of the Corporate

question 82

Multiple Choice

Which of the following is not a characteristic of the corporate form of business entity?

• A)It is a separate legal entity.
• B)Owners have unlimited liability.
• C)It has an indefinite life span.
• D)Owners often are not an active part of management.

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Definitions:

Recording Process

The systematic procedure of capturing financial transactions in accounting records.

General Journal

A primary accounting record where financial transactions are recorded in chronological order, detailing debits and credits for those transactions.

Analyzed

The process of examining and breaking down data or information in order to gain better insight and make informed decisions.

Chronological Record

A documentation of events in the order of their occurrence.