Question

Movie Makers is a legal entity whose assets and liabilities are separate from its owners. It can receive, own, and transfer property, enter into contracts with individuals or other legal entities, and sue and be sued in court. What type of business is Movie Makers?a. proprietorshipb. corporationc. limited partnershipd. cartele. general partnership

Answer 1

Answer:

The answer is B. Corporation

Explanation:

A corporation reflects the definition of entity concept in accounting which tells us that a business is separated from its owners.

In addition to being sued or can sue, a company is taxed separately from its owners while the profits of a sole proprietor and partners are taxed as personal income of the business owners. Also a corporation is liable for its own debt.

Answer 2

Answer:

The correct answer is letter "B": corporation.

Explanation:

A Corporation is a large company with particular characteristics. Corporations are known to be separate legal entities from their owners according to law. This means companies themselves are legally liable for their acts and debts, not the shareholders. Corporations may enter into contracts, prosecute and appeal, and borrow money as a single party.