A Sole Proprietor

question 109

Multiple Choice

A sole proprietor

• A) assumes all losses of the business.
• B) assumes no profits.
• C) receives tax-free fringe benefits.
• D) assumes no losses.

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Definitions:

Residual Value

The estimated amount that an asset will realize upon its disposal at the end of its useful life, after deducting any potential costs of disposal.

Extracted Ore

Raw minerals taken from the ground, which may be processed to extract valuable metals or other resources.

Loss On Disposal

The financial loss incurred when disposing of an asset for less than its book value or carrying amount.

Gain On Disposal

The profit realized from the sale of a fixed asset, such as machinery or real estate, above its book value.