An important fact to consider when determining how to organize a business is that:
A)members of an LLC have unlimited liability and are taxed like members of a partnership.
B)for accounting purposes,a proprietorship is a distinct entity from the proprietor.
C)the records of a partnership can include each partner's personal assets and debts.
D)the proprietor and the proprietorship are separate legal entities.

Question

Quizplus · Accepted Answer

For accounting purposes, a proprietorship is considered the same entity as the proprietor. In contrast, entities such as LLCs and partnerships have their own separate identities and accounting records. Recognizing this fact can impact decisions on how to structure and organize a business.

An Important Fact to Consider When Determining How to Organize