A Business Created as a Distinct Legal Entity Composed of One

question 59

Multiple Choice

A business created as a distinct legal entity composed of one or more individuals or entities is called a:

• A) corporation.
• B) sole proprietorship.
• C) general partnership.
• D) limited partnership.
• E) unlimited liability company.

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Definitions:

Cost of Repair Rule

A legal principle that allows a party suffering from property damage to recover the expenses necessary to restore the property to its pre-damage condition.

Negligent Credentialing

Occurs if a hospital has retained a physician that the governing body of the hospital knew or should have known was incompetent.

Actual Privity

A real or direct relationship between parties, especially in contracts, where both are expressly named and involved.

Fraudulent Financial Statement

Financial reports intentionally manipulated or altered to misrepresent a company's financial position, often to deceive stakeholders or regulatory bodies.