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:

Written Message

Communication conveyed through written symbols, either printed or digital, as opposed to spoken words.

Persuasive

Intended to convince or influence someone to adopt a certain viewpoint or to take a specific action.

Informative

Designed to provide useful information and increase knowledge on a particular subject.

Sales

The exchange of a commodity for money; the action of selling something.