Which of the Following Are Not a Benefit of a Sole

question 1

Multiple Choice

Which of the following are not a benefit of a sole proprietorship?

• A)Availability of pension plans.
• B)Conduit taxation.
• C)Lack of business continuity.
• D)No legal formalities.

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Definitions:

Measurement

The process of quantifying qualitative financial data in monetary terms through various accounting methods.

Going Concern Assumption

The assumption that the entity will continue to operate for the foreseeable future.

Historical Costs

The original monetary value at which an asset was bought or a liability was incurred.

Liquidation

The process of closing a business, selling its assets, and using the proceeds to pay creditors, with any leftovers distributed to shareholders.