Examveda
Examveda

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 )

  1. Nitin Pundir
    Nitin Pundir :
    2 years ago

    D ans is right because it asked about separate entity not asked about separate legal entity ok guys

  2. SARDAR ALI
    SARDAR ALI :
    3 years ago

    B is right Option

  3. SARDAR ALI
    SARDAR ALI :
    3 years ago

    B is right Option

  4. Tanvi Priya
    Tanvi Priya :
    4 years ago

    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

  5. Shah Jay
    Shah Jay :
    4 years ago

    Its only applicable to company

  6. Shahbaz Nayeem
    Shahbaz Nayeem :
    4 years ago

    The concept of separate entity is not applicable on partnership .
    How ans can be D I.e. all of the above.

Related Questions on Accounting