Which of the Following Statements Is True About the Different

Multiple Choice

Which of the following statements is true about the different forms of business?

A) If the firm is organized as a sole proprietorship, the proprietor's personal assets are separable from those of the firm because the firm is a separate legal entity.
B) If the firm is organized as a sole proprietorship, the proprietor has limited liability for the firm's obligations.
C) In general partnership, active partners have unlimited liability, whereas sleeping partners have limited liability.
D) Corporation is a separate legal entity.
E) Corporations have unlimited liability for the firm's obligations.