A Business Entity That Is Legally Separated from the Owners

question 25

Multiple Choice

A business entity that is legally separated from the owners is a __________.

• A) corporation
• B) general partnership
• C) proprietorship
• D) limited partnership

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Definitions:

Federal Reserve

The central bank of the United States, responsible for monetary policy, regulation of financial institutions, and maintenance of financial stability.

Check-Processing Region

An area or zone within the banking system designated for the processing and clearing of checks and other negotiable instruments.

Certified Check

A check for which the bank confirms that sufficient funds exist in the account to cover the check, and so sets aside the amount needed until the check is cashed or expires.

Cashier's Check

A check issued by a bank, drawing on its own funds rather than that of a personal account holder, guaranteeing payment to the payee.