Which of the Following Is an Advantage of Starting a New

question 174

Multiple Choice

Which of the following is an advantage of starting a new business as a proprietorship?

• A)The owner has limited personal liability.
• B)A proprietorship has few government rules and regulations to comply with.
• C)Business profits are not taxed.
• D)A proprietorship can easily attain additional funding.

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Definitions:

Collection Policy

The specific strategies and methods a company uses to manage the collection of its accounts receivable.

Credit Policy

The guidelines a company follows to determine the amount of credit to extend to customers and the terms of payment.

Credit Period

The time frame allowed by a seller for a buyer to pay for goods or services received, typically measured in days or months.

Receivables Monitoring

The process of overseeing and managing the amounts owed to a company by its customers for goods or services provided.