Which of the Following Statements About Organizational Forms of a Business

question 83

Multiple Choice

Which of the following statements about organizational forms of a business is not correct?

• 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.

---

Definitions:

Framed

In psychology, framing refers to the way information is presented to influence decision making and judgment.

Unchanging

Not altering, modifying, or evolving; remaining the same over time.

Forgetting Curve

A graph showing how the ability to retain information decreases over time without attempts to retain it.

Retention

The ability to maintain possession of information or knowledge over time, often used in the context of learning and memory.