Which of the Following Statements Describes an Advantage to the Owner

question 102

Multiple Choice

Which of the following statements describes an advantage to the owner of a single proprietorship?

• A)The firm has a legal existence separate from its owner.
• B)Shares of the firm can be traded on any stock exchange.
• C)He or she has limited liability.
• D)The owner's liability is limited to the amount he or she actually invests in the firm.
• E)The owner can readily maintain full and complete control over every aspect of the firm's operation.

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Definitions:

Contractual Agreements

Contractual agreements are legally binding arrangements between two or more parties outlining the terms, conditions, and obligations of each.

Financial Statement Disclosure

Requirement to provide comprehensive information within financial statements, ensuring transparency and aiding stakeholders in decision-making.

Gross Profit Percentage

A financial metric expressing gross profit as a percentage of total sales.

Net Sales

The total sales revenue of a company, minus the returns, allowances for damage or loss, and discounts.