Answered: owners have no personal liability under…

owners have no personal liability under which legal business structure? a. corporation b. a partnership c. a sole proprietorship d. there is liability in every legal business structure

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter2: Introduction To Financial Statements

Section: Chapter Questions

Problem 7MC: Owners have no personal liability under which legal business structure? A. a corporation B. a...

See similar textbooks

Related questions

Q: Which of the following is false regarding a sole proprietorship? The owner has unlimited personal…

A: There are several forms of business organisation, in which businesses can be run and maintained.…

Q: Which of the following statements is true of a sole proprietorship? A. A sole proprietorship…

A: The business can be identified as sole proprietorship, partnership or others.

Q: Which type of business organization is owned by only one owner? a. Corporation b. Partnership c.…

A: Sole proprietorship: The form of business entity which is owned and managed by an individual is…

Q: Form of business that is legally created under Oman Commercial Law a. Cooperative b. Partnership c.…

A: Cooperative societies means that form of activities which is run with the motive of mutual…

Q: Which type of business organization provides the least amount of protection forbankers and other…

A: Corporation: Corporation is the form of organization that has legal existence that is owned and…

Q: Subject: Law on Partnership and Corporation 1. What are some of the causes of vacancy in the office…

A: Casual Vacancy is when a director’s office is vacated before the expiry of his tenure. Director's…

Q: Which type of business organisation has a separated legal entity from its owners, and the owners are…

A: A. Limited Liability Company (LLC) A Limited Liability Company (LLC) is a cross between a…

Q: Which forms of business organization, ownership is readily transferable? a. Corporation b. Sole…

A: The forms of business organizations consists of corporation, sole proprietorship, limited liability…

Q: Which form of business organization is characterized by having the shortest start-up time and lowest…

A: Option C: proprietorship Proprietorship means a business or firm or enterprises etc which owned by…

Q: permitted Salalah Methanol Co. is a to engage in any lawful, for profit business or activity other…

A: Sole proprietorship refers to a form of business organization that is owned, managed, and controlled…

Q: 1. What are the potential consequence of a limited partner assumes management responsibilities…

A: An unincorporated commercial entity created by two or more people is known as a partnership. A…

Q: The major advantage of a regular partnership or a corporation as a form of business organization is…

A: Partnership: A partnership is a commercial enterprise that is possessed by two or more persons who…

Q: Which business organization has the most legal formality requirements? a. Corporation b. Partnership…

A: A corporation is funded by many owners (shareholders) and to keep their money safe, corporations…

Q: Which type of business organization is owned by only one owner? Corporation Partnership Sole…

A: Find the business organization that is owned by only one owner:

Q: Does the election of one form of management create a difference in the fiduciary duties of members…

A: Limited liability Company: Limited Liability Company refers to a business structure where the owners…

Q: Which type of business organization is owned by only one owner? a. Corporation b. Partnership c.…

A: Sole proprietorship: The form of business entity which is owned and managed by an individual is…

Q: What expense do corporations incur that sole proprietorships and partnerships do not?

A: The sole proprietorship and partnerships will be explained:

Q: What are the disadvantages of a partnership over a limited liability company form of organization…

A: PARTNERSHIP:A partnership is that form of business where more than two persons enjoy their share in…

Q: This business starts with relatively small amount of capital and the owner proprietor is only person…

A: The business may be started with one person or multiple persons.

Q: Which type of business structure requires that all shareholders be licensed? Question 1 options: a)…

A: A corporation is a separate legal entity created under the eyes of the law, i.e., a formal…

Q: Owners in which of the following forms of business have unlimited liability? a. sole…

A: Business entity: A business organization which is created by one or more persons and governed by…

Q: A benefit of a sole proprietorship is that liability is limited to that of the business financial…

A: A sole proprietorship is the simplest form of business that an individual can do or operate. It is…

Q: Businesses can be classified into the following forms: sole proprietorship, partnership,…

A: Choosing the right sort of business takes significant research and thought and It's beneficial to…

Q: How a corporation is different from a partnership in terms of owner, legal status, liabilities,…

A: The distinction between a corporation and a partnership in terms of owner, legal status, liability,…

Q: Which of the following forms of business organization formats does not offer at least some liability…

A: Proprietorship, general partnership, limited liability company (LLC), and corporation are all forms…

Q: Determine if sole proprietorship, partnership, or corporation. Select all that is applicable between…

A: Business ownership seems mostly seems in three top forms i.e sole proprietorship, partnership, or…

Q: Owners enjoy limited liability in a a) partnership b) corporation c) sole proprietorship d)…

A: Solution: Corporations are separate legal entity from owners / shareholders. In corporations, owners…

Q: What are the advantages of operating a business as a partnership rather than as a corporation? What…

A: Describe the advantages and dis-advantages of operating a business as a partnership rather than as a…

Q: Which of the following is NOT a form of ownership that the entrepreneur should consider? a. Sole…

A: Partnership can be defined as an agreement in which two or more parties agrees to share profits and…

Q: What are the main advantages of (a) proprietorships, (b) partnerships, and (c) limited liability…

A: Proprietorship is a form of business where a single person runs & owns the business. He has…

Q: In which legal business relationship two or more people agree to share ownership and management of a…

A: Correct Option is A - None of these Partnership is a legal business relationship two or more people…

Q: Owners have no personal liability under which legal business structure?

A: The type of business structure you choose determines many components of your business, including…

Q: What are the advantages and disadvantages of partnership type of business over sole Proprietorship?

A: partnership: it is business owned by two or more persons. sole proprietorship: business oned by…

Q: Which business entity could O A. a sole proprietorship O B. a partnership O C. a limited liability…

A: When a group of people with a shared objective form a corporation, it is known as a corporation.…

Q: Which is true with regards to the disadvantages of the major business organization? * O O Unlimited…

A: Partnership form VS corporations Liability: Partnership has unlimited liability but corporations…

Q: how do owners’ equity accounts in a corporation differ from those in a sole proprietorship or…

A: Stockholder’s equity: It refers to the amount of capital that includes the amount of investment by…

Q: Which of the following are limited liability entities? A. General partnership B. General liability…

A: LLC is limited liability company which is combinations is typically hybrid type of corporation which…

Q: A .............. is an artificial being, existing only in contemplation of law. Select one: O a.…

A: Introduction: Partnership: Its an agreement between two or more members for forming a business with…

Q: Which type of business has ownership interests that cannot be transferred to other parties without…

A: In both corporation and limited liability companies the ownership interest cannot be transferred to…

Q: Explain how legal business entities differ in terms of the liability prot

A: Answer: Corporations and LLCs offer owners limited liability. General partners and sole proprietors…

Q: What is the legal form of your business? Is your businessa sole proprietorship, a partnership, or a…

A: The legal type a firm chooses to control beneath is a very important call with implications for the…

Question

owners have no personal liability under which legal business structure? a. corporation b. a partnership c. a sole proprietorship d. there is liability in every legal business structure

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A business entity that has no ;ax liability because the entity's income is passed through to the owners, who pay taxes on it is O a. 0 b. O c. 0 d. a pass-through entity. a sole proprietorship an entrepreneur. an independent contractor.
A benefit of a sole proprietorship is that liability is limited to that of the business financial and assets not the personal assets of the owner/proprietor. true or false
Which type of business organization is owned by only one owner? a. Corporation b. Partnership c. Sole proprietorship d. Items a, b, and c are all correct.
A business created as a distinct legal entity composed of one or more individuals or entities is known as a: Select one: a. None of the given answers is correct. b. Sole proprietorship c. Owner-managed entity d. Partnership
Which type of business organization provides the least amount of protection forbankers and other creditors of a company?a. Partnershipb. Corporationc. Proprietorshipd. Both a and c
Owners in which of the following forms of business have unlimited liability? a. sole proprietorships b. limited partnerships c. corporations d. LLCs
What is the legal relationship of a sole proprietorship to its owner? A. The owner and the sole proprietorship are considered to be the same legal entity. B. A sole proprietorship can survive the death of its owner. C. The owner can shelter profits of a sole proprietorship from taxation. D. Then owner is not liable for debts incurred by the sole proprietorship.
Which of the following statements is true of a sole proprietorship? A. A sole proprietorship has to pay business income taxes. B. A sole proprietorship joins two or more individuals as co−owners. C. The sole proprietor is personally liable for the liabilities of the business. D. A sole proprietorship is taxed separately from the owner.
In which legal business relationship two or more people agree to share ownership and management of a business. a. None of these b. Corporation c. Sole proprietorship d. S Corporation Clear my choice
Businesses can be classified into the following forms: sole proprietorship, partnership, corporation, limited liability company (LLC), and limited liability partnership (LLP). Different forms of businesses have different characteristics. Which of the following characteristics would apply to a limited liability company and a limited liability partnership? Check all that apply. LLPs are not suitable for professional firms such as accounting, law, and architecture Limited financial liability Taxed as a partnership Have corporate ownership structure Owned by single individual Owners have limited liability and right to vote
Which type of business organization is owned by only one owner? Corporation Partnership Sole proprietorship Items a, b, and c are all correct.
Which of the following is true about this statement: "In a sole proprietorship, the owner's personal assets are at risk if the business is not successful." Is this true? a) No, personal assets are protected by sole proprietorship laws. b) Yes, there is no protection for personal assets with sole proprietorships. c) No, personal assets are only at risk with corporations. d) Yes, this is true for all forms of business.