A Business That Is a Distinct Legal Entity Is A

question 61

Multiple Choice

A business that is a distinct legal entity is a:

• A) Proprietorship.
• B) Partnership with only two partners.
• C) Limited partnership.
• D) General partnership.
• E) Corporation.

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Definitions:

Treasury Stock

Refers to shares that were previously issued and outstanding but have been bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Stock Split

An action by a company to increase the number of its outstanding shares by issuing more shares to current shareholders, often to make the stock more affordable.

Market Value

The current price at which an asset or service can be bought or sold in a marketplace, reflecting supply and demand dynamics.

Retained Earnings Statement

A summary of the changes in the retained earnings in a corporation that have occurred during a specific period of time, such as a month or a year.