A Sole Proprietorship Involves a Person Who

question 29

Multiple Choice

A sole proprietorship involves a person who:

• A) Does not fully own her business but has formed a separate legal entity for it
• B) Does not fully own her business and has not formed a separate legal entity for it
• C) Fully owns her business and has formed a separate legal entity for it
• D) Fully owns her business but has not formed a separate legal entity for it

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Definitions:

Consolidated Amount

The total sum resulting from the combination of various items, expenses, revenues, or financial statements.

Direct Approach

A method of presentation in cash flow statements where actual cash flow information from operating activities is presented directly.

Inventory

Materials and products that a business holds for the ultimate purpose of resale.

Investment Account

An account held at a financial institution or brokerage which is used for the buying of investments such as stocks, bonds, and mutual funds.