A Sole Trader Is

question 1

Multiple Choice

A sole trader is:

• A)Entitled to business profits but not responsible for business losses.
• B)The owner of a business that is a legal entity separate from its owner.
• C)Personally liable for business debts and losses.
• D)Jointly and severally liable for business losses.

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Definitions:

Annual Cash Operating Inflows

Annual cash operating inflows refer to the total cash receipts a business receives from its operating activities during a fiscal year.

Salvage Value

The estimated residual value of an asset at the end of its useful life, reflecting what it can be sold for or scrapped.

Payback Period

The amount of time it takes for an investment to generate cash flow sufficient to recover its initial cost.

Operating Costs

Expenses associated with the day-to-day operations of a business, including rent, utilities, and payroll.