Catalina Owns a Small Restaurant and Is Solely Responsible for Its

question 73

Multiple Choice

Catalina owns a small restaurant and is solely responsible for its debts and liabilities.She is also entitled to all the profits the restaurant makes after paying off taxes and other expenses.Her business is an example of a(n) :

• A)joint venture.
• B)S corporation.
• C)sole proprietorship.
• D)partnership.
• E)C corporation.

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Definitions:

Economic Interest

A stake or concern in an economic entity or activity, often referring to the level of investment or involvement an individual or organization possesses in a company or project.

Equity Method

An accounting technique used by companies to record their investments in other companies when they have significant influence but not full control.

Cost Method

An accounting approach used to account for investments, where the investment is recorded at its cost and adjustments are made for dividends received or possible impairments.

Note Disclosure

An explanatory or descriptive information included within financial statements, usually providing details about the basis of preparation, accounting policies, and specifics of certain account balances.