The partnership form of business organization enjoys an unlimited life. is a common form of organization for service-type businesses. is a separate legal entity. has limited liability.

is a common form of organization for service-type businesses. More test answers on https://studyhippo.com/chapter-1-test-test-answers/

Correct answer. Correct! Because a corporation is a separate legal entity and because of the government’s desire to protect stockholders, corporations are heavily regulated. Which of the following is a disadvantage of the corporate business form? Entry field with correct answer Easy acquisition of capital No income taxes Government regulation Continuous life

Government regulation More test answers on https://studyhippo.com/acc-255-chp-11/

Jack and Jill form a partnership. Jack runs the business in New York, while Jill vacations in Hawaii. During the time Jill is away from the business, Jack increases the debts of the business by $20,000. Which of the following statements is true regarding this debt? A) Only Jack is personally liable for the debt, since he has been the managing partner during that time. B) Only Jill is personally liable for the debt of the business, since Jack has been working and she has not. C) Both Jack and Jill are personally liable for the business debt. D) Neither Jack nor Jill is personally liable for the business debt, since the partnership is a separate legal entity.

Both Jack and Jill are personally liable for the business debt More test answers on https://studyhippo.com/accounting-final-exam-chps-1-12/

TF: A business organized as a separate legal entity owned by stockholders is a partnership.

FALSE. A Corporation is a separate legal entity owned by stockholders. A partnership is A voluntary association of two or more persons for the purpose of conducting a business. More test answers on https://studyhippo.com/review-study-guide/

Which of the following is not true of a general partnership? 1) Ownership by the partners may be unequal. 2) It is a separate legal entity. 3) An important characteristic is that the partners share in the profits equally. 4) Each partner has an equal right to participate in management.

3) An important characteristic is that the partners share in the profits equally. The partners may agree to share profits as well as losses unequally. Answer (a) is incorrect because the partners may agree that ownership in the partnership is unequal. Answer (b) is incorrect because under RUPA, the partnership is a separate legal entity. Answer (d) is incorrect because the partners may agree to unequal management rights. More test answers on https://studyhippo.com/business-structure/

The proprietorship form of business organization… A) must have at least two owners in most states. B) generally receives favorable tax treatment relative to a corporation. C) combines the records of the business with the personal records of the owner. D) is classified as a separate legal entity.

Generally receives favorable tax treatment relative to a corporation More test answers on https://studyhippo.com/accounting-final-exam-chps-1-12/

The sole proprietorship form of business organization is classified as a separate legal entity. must have at least two owners in most states. combines the records of the business with the personal records of the owner. generally receives favorable tax treatment relative to a corporation.

generally receives favorable tax treatment relative to a corporation. More test answers on https://studyhippo.com/acc-255-chp-1/

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Separate Legal Entity Flashcards, test questions and answers

Discover flashcards, test exam answers, and assignments to help you learn more about Separate Legal Entity and other subjects. Don’t miss the chance to use them for more effective college education. Use our database of questions and answers on Separate Legal Entity and get quick solutions for your test.

What is Separate Legal Entity?

A separate legal entity, also known as a legal person, is an entity that is treated by the law as if it were an individual. This means that it can own property, enter into contracts, and sue or be sued in court. Separate legal entities are usually created through some form of registration with a government agency, such as a corporation or limited liability company (LLC).In general, a separate legal entity has several advantages over other forms of business organization. One advantage is that owners of the entity have limited liability for its debts and obligations. This means that the owners are not personally responsible for any debt incurred by the entity; instead, their personal assets are protected from any claims made against the entity. Additionally, creditors cannot seek out personal assets to satisfy debts associated with the separate legal entity; instead they must pursue only those assets owned by the business itself. Another advantage of creating a separate legal entity is that it simplifies ownership structures within businesses and helps to protect against disputes between owners over how profits should be distributed or how decisions should be made. Furthermore, forming a separate legal entity can create strong asset protection benefits because creditors cannot go after personal assets if they are owned separately from those owned by the business itself. Finally, forming a separate legal entity can provide important tax benefits as well since entities such as LLCs are taxed differently than individuals and partnerships. Overall, establishing a separate legal entity can provide many benefits both to businesses and their owners alike. By setting up this type of structure you will be able to protect yourself from personal liability while also creating an organized structure for making decisions and distributing profits among owners safely and securely.