Accounting Multiple Choice Question – 26 July 2024

Which of the following business structures necessarily has a legal identity that is separate from that of its owners or owners?

Select ONE answer:

1. A joint venture between two separate limited liability companies
2. A general partnership
3. A limited liability partnership
4. A strategic alliance

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct –> Only the limited liability partnership necessarily exists as an entity separate from its owners. A general partnership is not a separate legal entity from the partners. A joint venture between two limited liability companies is usually another limited company with 50/50 ownership but does not necessarily have to be established in that way. A strategic alliance is an informal contractual or minority cross shareholding arrangement and normally no separate company is formed.
4. Not correct

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