Which Type of Business Is Legally Considered a Separate Entity

question 103

Multiple Choice

Which type of business is legally considered a separate entity from its owners and is liable for its own debts?

• A) sole proprietorship
• B) corporation
• C) limited partnership
• D) cooperative
• E) general partnership

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Definitions:

Cost Drivers

Factors that cause the cost of an activity or process to change, which can include the volume of units produced, labor hours, or machine hours.

Vocational School

An educational institution that provides practical and skills-based training aimed at preparing students for specific trades or careers.

Budgets

Financial plans that estimate revenue and expenses over a specified future period of time, often used for planning and controlling financial performance.

Variable Cost Estimates

Projections of costs that vary directly with the level of output or production volume.