Whether a Person Setting Up a New Business Operates as a Sole

question 41

Multiple Choice

Whether a person setting up a new business operates as a sole trader, forms a partnership or sets up a company is a question about the:

• A)Architecture of the business.
• B)Legal structure of the business.
• C)Social structure of the business.
• D)Profitability of the business.

Recognize the roles of internal and external users in financial statement analysis.

Appreciate the importance of standards for comparison in financial analysis.

Comprehend the building blocks of financial statement analysis including liquidity, efficiency, solvency, and profitability.

Identify different types of financial statement analysis tools and their purposes.

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Definitions:

Sedimentary

Pertaining to rocks formed by the accumulation or deposition of mineral or organic particles at the Earth's surface, followed by compaction.

Sandstone

A sedimentary rock composed mainly of sand-sized minerals or rock grains.

Shale

A fine-grained sedimentary rock that can contain significant amounts of oil and natural gas.

Magnitude 9.0

A measure on the Richter scale indicating an extremely powerful earthquake, capable of causing widespread destruction and significant alteration of the Earth's surface.