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: Option D
Solution(By Examveda Team)
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.Join The Discussion
Comments ( 6 )
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D ans is right because it asked about separate entity not asked about separate legal entity ok guys
B is right Option
B is right Option
Answer should be (B) i.e corporation only,as also if we talk in terms of features ,only company has a feature of 'separate legal entity' and no other form have. So answer is B
Its only applicable to company
The concept of separate entity is not applicable on partnership .
How ans can be D I.e. all of the above.