A partnership is a business organized as a separate legal entity.

Separate Legal Entity

A principle acknowledging that a corporation has a separate legal existence from its shareholders, protecting them from the company's debts.

Partnership

A business owned by two or more persons associated as partners.

Differentiate between different business organizations in terms of formation, liability, and financial risk.

Verified Answer

Final Answer :

False

Explanation :

A partnership is not considered a separate legal entity; the partners are personally liable for the business's debts and obligations.

Learning Objectives

Differentiate between different business organizations in terms of formation, liability, and financial risk.