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The business entity concept requires that a business is treated as being separated from its owners. True or False?

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Question added by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date Posted: 2016/02/09
rabia bashir
by rabia bashir , training , aas chartered accountant

yes, it is true business is treated as a separate legal entity.

 

 

abdelaziz allam
by abdelaziz allam , محاسب اول , شركة كامبردج مصر للاستثمار التعليمي ش.م.م

true ..................................

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Duncan Robertson
by Duncan Robertson , Strategy Consultant , Duncan Robertson Consultancy

A business may or may not be a separate entity from its owners: it is a matter for the owners to decide.

By definition, a limited company is a separate entity from its owners but a partnership is not.

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