Which of the Following Statements Is Incorrect

question 23

Multiple Choice

Which of the following statements is incorrect?:

• A) The liability of shareholders to contribute to the debts of an insolvent company is limited.
• B) A sole proprietorship is an accounting entity.
• C) Individual partners are personally liable for partnership debts.
• D) Partnerships are regarded as separate legal entities.

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated by a hierarchy of needs starting from basic physiological needs to self-actualization.

Needs

Needs are basic or essential requirements that individuals must have met in order to live, work effectively, and achieve well-being, including physical, social, and psychological necessities.

Creative Behavior

Involves doing things at work that are innovative and that provide some value for the organization.

Expectancy Theory

A motivational theory suggesting that individuals are motivated to act in certain ways based on their expectations of outcomes and the attractiveness of those outcomes.