Which of the Following Is a Major Advantage of Sole

question 114

Multiple Choice

Which of the following is a major advantage of sole proprietorships?

• A)If sole proprietors seek funding from banks,down payment requirements typically are low.
• B)Banks don't require any form of personal collateral to guarantee loans to sole proprietors.
• C)A range of options are available for raising working capital for sole proprietors.
• D)It is always possible to bring in others to the business in a sole proprietorship.
• E)Autonomy in a sole proprietorship comes with total ownership of the business's finances.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting.

Statement of Net Position

The Statement of Net Position is a financial report that details the assets, liabilities, and net worth (equity) of an entity at a specific point in time, akin to a balance sheet in the private sector.

Noncurrent Liabilities

Long-term financial obligations a company owes that are not due for repayment within the next 12 months, such as long-term loans and bond issues.

Capital Assets

Long-term assets acquired or owned by a company or individual, anticipated to be used for more than one year, and intended for the operation or investment purposes.