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:

Photoreceptors

Specialized cells located in the retina of the eye that respond to light, enabling the perception of vision.

Cortex

The cortex is the outer layer of the cerebrum of the brain, involved in high-level functions such as consciousness, thought, emotion, reasoning, language, and memory.

Bipolar Cells

Nerve cells in the retina that are involved in the transmission of visual signals from the photoreceptors to the ganglion cells.

Optic Nerve

The nerve that transmits visual information from the retina to the brain, enabling sight.