One of the Advantages of Running a Business as a Sole

question 28

Multiple Choice

One of the advantages of running a business as a sole trader (ST) is that:

• A)the ST usually is not required to register a business name.
• B)the business is usually easier and cheaper to set up than other business structures.
• C)the ST usually has greater access to funds than a partnership.
• D)the business can keep operating after the death of the ST.

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Definitions:

Operating Segment

A component of a business that engages in business activities which may earn revenues and incur expenses, and for which separate financial information is available.

Operating Segments

Parts of a business for which financial information is available and evaluated by the chief decision maker for purposes of resource allocation and performance assessment.

Manufacturing Operations

The processes involved in the production of goods, including design, fabrication, and assembly of products.

Reportable

Pertains to information or incidents that must be officially recorded or disclosed, often in the context of legal, financial, or regulatory requirements.