Which of the Following Statements About a Sole Trader Is

question 25

Multiple Choice

Which of the following statements about a sole trader is NOT true?

• A)Anyone capable of entering into a contract can operate a business as a sole trader.
• B)A sole trader may have difficulty in raising business capital.
• C)Sole traders have unlimited liability for the debts of the business.
• D)The business of a sole trader can sue and be sued in its own name.

Apply the lower of cost or market rule to inventory valuation.

Analyze the effect of internal control measures on inventory management and reporting.

Understand the treatment of consignment goods, goods in transit, and returns on inventory counts and financial reporting.

Understand the principles of inventory costing methods (e.g., FIFO, LIFO, average cost, and specific identification).

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Definitions:

Worker Productivity

The measure of the output and efficiency of a worker within a specific period of time.

Concrete Measure

Specific and tangible methods or criteria used to assess or quantify something, often in the context of performance or success.

Industrial Revolution

A period of major industrialization from the late 18th to early 19th centuries that transformed primarily agrarian societies into industrialized ones.

Modern Sense

In contemporary understanding or usage, reflecting recent or current trends and perceptions.