Question

which of the following is a legal entity completely separate from the entities who own it?

d. corporation
b. limited liability partnership
c. general partnership
a. sole proprietorship

Explanation:

Define separate legal entity

A separate legal entity is recognized by law as having its own rights and liabilities distinct from its owners.

Evaluate the business structures

• Sole proprietorships and general partnerships are not legally separate from their owners.
• Limited liability partnerships offer liability protection but are generally treated as associations of partners rather than fully independent legal entities.
• A corporation is a distinct legal entity ("legal person") completely separate from its owners (shareholders).

Answer:

• d. corporation (Correct answer)
• b. limited liability partnership
• c. general partnership
• a. sole proprietorship