SubmitComplete the following table with either a yes or no regarding the attributes of a proprietorship, partnership, corporation, and limitedliability company (LLC).Attribute PresentProprietorship PartnershipCorporationLLC1. Limited liability2. Business entity3. Legal entity< Prev2 of 6Next >5,200179tv

Answered: Complete the following table with…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Complete the following table with either a yes or no regarding the attributes of a proprietorship, partnership, corporation, and limited
liability company (LLC).
Attribute Present
Proprietorship Partnership
Corporation
LLC
1. Limited liability
2. Business entity
3. Legal entity
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Step 1

Business entity means business is seen as a separate individual for accounting purposes. Sole Proprietorship, Partnership, Companies are business entities.

Limited Liability means that owners are liable to the debt of the business to the extent for their share in the business. Corporations and LLC, etc have limited liability. Sole proprietorship and partnership are not limited liabilities as their owners are liable to pay the debts from their personal assets as well.

Legal entity means business is seen as a person having the legal rights as a normal person. Corporations and LLC have legal rights but Sole proprietorships and partnerships don't.

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