Which of the Following Is an Advantage of Sole Proprietor

question 105

Multiple Choice

Which of the following is an advantage of sole proprietor ownership?

• A) ease with which qualified employees can be found
• B) ease with which capital can be raised
• C) limited liability
• D) less government regulation

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Definitions:

Maker

In the context of finance, a maker is typically a party that creates or executes an order, often in trading or banking environments.

Receivables Turnover Ratio

A financial ratio that measures how effectively a company uses its assets by comparing net credit sales with average accounts receivable.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers for sales made on credit.

Receivables Turnover Ratio

The Receivables Turnover Ratio measures how effectively a company collects its outstanding credit, calculated by dividing net credit sales by the average accounts receivable.