Q142
The concept of 'separate entity' is applicable to which of the following types of businesses?
A.
Sole proprietorship
B.
Corporation
C.
Partnership
D.
All of the above
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Ownership in business entities can be a sole proprietorship, partnership, or corporation. From the accounting perspective and its purpose these types of business are considered separate entities from their owners. The corporation is only one considered as a separate legal entity.