Which of the Following Statements About Types of Business Entities

question 117

Multiple Choice

Which of the following statements about types of business entities is true?

• A)For accounting purposes a sole proprietorship is not a separate entity from its owner.
• B)Ownership in a partnership is represented by having shares of capital stock.
• C)One advantage of a corporation is ability to raise capital.
• D)Sole proprietorships are subject to double taxation.

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Definitions:

Conscious Awareness

Being cognizant of and capable of reflecting on one’s own being, perceptions, thoughts, environment, and life occurrences.

Cocktail Party Effect

The ability to focus one's auditory attention on a particular stimulus while filtering out a range of other stimuli, as at a noisy gathering.

Change Blindness

An inability or failure to notice large changes in one's environment or in a visual stimulus when the change occurs simultaneously with a visual disruption.

Selective Inattention

The process by which an individual unconsciously chooses to ignore or disregard certain stimuli in their environment.