The Business Entity Principle

question 187

Multiple Choice

The business entity principle

• A) requires that sole proprietors have unlimited liability
• B) requires that partnership income be taxed at the partnership level
• C) means that business records should be kept separate from the owner's personal records
• D) requires that partnerships have written agreements
• E) requires that corporations have shareholders

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Definitions:

Inflation Rate

The inflation rate is the percentage increase in the general level of prices for goods and services in a country over a period of time.

Money-Supply Curve

A graphical representation of the relationship between the quantity of money in an economy and the price level.

Economy's

The state of a geographic or political region's system of production, consumption, and distribution of goods and services.

Nominal Income

The amount of money income received in a given time period, not adjusted for inflation.