An Important Fact to Consider When Determining How to Organize

question 103

Multiple Choice

An important fact to consider when determining how to organize a business is that:

• A)members of an LLC have unlimited liability and are taxed like members of a partnership.
• B)for accounting purposes,a proprietorship is a distinct entity from the proprietor.
• C)the records of a partnership can include each partner's personal assets and debts.
• D)the proprietor and the proprietorship are separate legal entities.

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Definitions:

Fatty Acids

Long chains of hydrocarbons terminated with a carboxylic acid group, essential components of lipids.

Aminopeptidase

An enzyme that removes amino acids from the amino end of proteins, playing a critical role in digestion and other processes.

Enterocytes

Specialized epithelial cells found in the lining of the small intestine, involved in the absorption of nutrients.