QUESTION 15 Which Which of the following statements is correct about a sole trader? a. Pays corporation tax on business profits b. Must register his/her business as a separate legal entity C. Must provide a profit share to employees d. Is liable personally for the consequences of any legal action against the busines

QUESTION 15 Which Which of the following statements is correct about a sole trader? a. Pays corporation tax on business profits b. Must register his/her business as a separate legal entity C. Must provide a profit share to employees d. Is liable personally for the consequences of any legal action against the busines

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...

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Which Which of the following statements is correct about a sole trader? a. Pays corporation tax on business profits b. Must register his/her business as a separate legal entity C. Must provide a profit share to employees d. Is liable personally for the consequences of any legal action against the busines
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6:32 Blackboard 1. The proprietorship form of business organization must have at least two owners in most states. a. generally receives favorable tax treatment relative to a corporation. b. combines the records of the business with the C. personal records of the owner. is classified as a separate legal entity. d. A business organized as a corporation 2. is not a separate legal entity in most states. a. b. requires that stockholders be personally liable for the debts of the business. is owned by its stockholders. C. has tax advantages over a proprietorship or partnership. d. The partnership form of business organization 3. is a separate legal entity. a. is a common form of organization for service- type businesses. b. enjoys an unlimited life. C. has limited liability. d. 4. External users of accounting information, like the Internal Revenue Service, are most commonly known as taxing authorities. a. labor unions. b. customers. C. regulatory agencies. d. Which of the following statements…
Question 6 Which of the following is NOT a right possessed by common stockholders of a corporation? O a. the right to receive a minimum amount of dividends b. the right to vote in the election of the board of directors c. the right to sell their stock to anyone they choose d. the right to share in assets upon liquidation A Moving to the next question prevents changes to this answer.
QUESTION 10 Which of the following is an organizational disadvantage of a corporation? A. Taxable entity B. Separate legal entity C. Relative ease of ownership transfer D. Limited liability of owners