Which type of business organisation has a separated legal entity from its owners, and the owners are not liable for the debt of the business? Select one: A. Limited company B. Company C. Partnership D. Sole proprietorship

Which type of business organisation has a separated legal entity from its owners, and the owners are not liable for the debt of the business? Select one: A. Limited company B. Company C. Partnership D. Sole proprietorship

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 5P

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Question

Which type of business organisation has a separated legal entity from its owners, and the owners are not liable for the debt of the business?

Select one:

A. Limited company

B. Company

C. Partnership

D. Sole proprietorship

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.

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