The Economic Entity Assumption Requires That the Activities

question 86

Multiple Choice

The economic entity assumption requires that the activities

• A) of different entities can be combined if all the entities are corporations.
• B) must be reported to the Securities and Exchange Commission.
• C) of a sole proprietorship cannot be distinguished from the personal economic events of its owners.
• D) of an entity be kept separate from the activities of its owner.

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Definitions:

Transferable Skill

A skill acquired in one context that is applicable or valuable in another context.

Leadership

The action of leading a group of people or an organization.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment, involving skepticism and questioning of accepted conclusions.

Interpersonal

Relating to interactions and relationships between people.