Question

Each of the following is a primary consideration in the choice of business entity, except: a. The degree to which the founders' personal assets are protected from liabilities of the business b. The availability of favorable tax strategies c. The desirability for potential investors and lenders d. The entrepreneur's lifestyle

Answer 1

D

Step-by-step explanation:

A business entity means that the business is its own owner and it is a completely different and distinct entity from the entrrpreneur. Definitely the lifestyle of the enterpreneur cannot affect the business.

The finances owned by the business and that owned by the enterpreneur doesn"t have a meeting point and are seperate entities

If the business buys a car for itself, this is not connected to the enterpreneur even though he might be using it and the enterpreneur cannot lay claim on it. In case the business is liquidated the car is sold as an assest of the business. This goes for the enterpreneur personal property also. So his lifestyle is not part of the business entity.

Answer 2

d. The entrepreneur's lifestyle

Step-by-step explanation:

One of the principles of accounting is business entity, the business is a distinct entity from the owners. So the lifestyle of the enterpreneur does not affect the business.

Also because of this financial transactions of the business and those of the owners are mutually exclusive. For example if an entrepreneur buys a house for himself, this is not connected to the business and the business cannot lay claim on it. This also applies vice versa when the business obtains property the owner cannot claim it for personal use.