Keeping the Personal Assets of the Owner of a Business

question 45

Multiple Choice

Keeping the personal assets of the owner of a business separate from the assets of the firm is an example of

• A) following the going concern assumption.
• B) applying the realization principle.
• C) following the separate entity assumption.
• D) applying the conservatism convention.

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Definitions:

Moral Leadership

Leadership that is always “good” and “right” by ethical standards.

Personal Integrity

The quality of being honest and having strong moral principles that one does not breach.

Transformational Leadership

A style of leadership where the leader works with teams to identify needed change, creating a vision to guide the change through inspiration and executing the change in tandem with committed members of the group.

Transactional Leadership

A leadership style that focuses on supervision, organization, and performance; rewarding or punishing team members based on their performance.