Which of the Following Statements About Organizational Forms of a Business

question 108

Multiple Choice

Which of the following statements about organizational forms of a business is FALSE?

• A) In a sole proprietorship form of business or in a partnership form, the owner(s) are personally responsible for the debts of the business.
• B) The partnership agreement states how profits are to be shared between partners and what happens when a new partner is to be admitted or an existing partner is retiring.
• C) A corporation is a separate entity from both a legal and accounting perspective.
• D) The owners of a corporation are legally responsible for the corporation's debts and taxes. The owners of a corporation are not responsible for the debts and taxes of the business.

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Definitions:

Welfare State

A social system in which the government assumes responsibility for the wellbeing of its citizens by providing social and economic protections and services.

Political Interest Groups

Organizations that seek to influence government policy and decision-making without seeking formal political office, often by lobbying or campaigning.

Corporatists

Individuals or philosophies advocating the control of a state or organization by large interest groups, emphasizing the collaboration between the government and major industries for economic regulation and stability.

Organizing Economies

The structured arrangement and management of economic activities and resources within a community, region, or country, aiming for efficiency and growth.