A Corporation Is a Separate Entity from Its Owners Where

question 149

Multiple Choice

A corporation is a separate entity from its owners where the:

• A) owners are not personally responsible for the obligations of the company.
• B) articles of incorporation are not required to set up the company.
• C) company cannot enter into binding contracts in its name.
• D) death or withdrawal of an owner dissolves the company.

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Definitions:

Disposal

The act of selling or getting rid of an asset or a portion of a business.

Laptop Computer

A portable personal computer with a screen and alphanumeric keyboard.

Loss on Disposal

The financial loss recorded when an asset is sold or disposed of for less than its carrying amount on the balance sheet.

Compadrazgo

A cultural practice in Hispanic communities involving a formal relationship between parents and their child's godparents, facilitating social and spiritual bonds.