Liabilities Represent Creditors' Claims on the Business's Assets

question 126

True/False

Liabilities represent creditors' claims on the business's assets.

---

Definitions:

Co-Operative

An organization owned and operated for the benefit of those using its services, with members sharing control according to democratic principles.

Distinct Legal Entity

This term refers to a business structure that is recognized as separate from its owners, having its own rights and liabilities.

Corporation

A legal entity that is separate and distinct from its owners, recognized by law as having rights and liabilities.

General Partnership

A business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a partnership agreement.