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Commerce · Q142

Accounting

Graduate and Post Graduate · Commerce · question 142

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
Answer

Answer: 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.