The Business Entity Principle

question 107

Multiple Choice

The business entity principle:

• A) Requires that sole proprietors have unlimited liability.
• B) Requires that partnership income be taxed at the partnership level.
• C) Means that business records should be kept separate from the owner's personal records.
• D) Requires that partnerships have written agreements.
• E) Requires that corporations have shareholders.

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Definitions:

Advantages

Benefits or favorable factors that contribute to the success of a business or strategy.

Disadvantages

Negative or less favorable conditions or factors that reduce effectiveness or efficiency.

Core Characteristics Model

A framework that identifies the key attributes of jobs that affect employees' motivation and job satisfaction.

Job Enrichment

An approach to redesign jobs in a way that increases the activities involved and gives employees more control and responsibility.