When a Business Is Set Up as a Sole Proprietorship

question 250

True/False

When a business is set up as a sole proprietorship, the owner of the business faces limited liability.

Understand the use of specific software tools for database querying.

Recognize the volume of data generated in large-scale events and the concept of Big Data.

Understand the stages of the Knowledge Management System (KMS) cycle.

Grasp the role of functional dependencies and keys in database structure.

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Definitions:

Shares Common Stock

Equity securities that represent ownership interest in a corporation, with rights to dividends and to vote on corporate matters.

Variable Interest Entity

A legal entity in which an investor holds a controlling interest due to contractual agreements rather than owning a majority of voting rights.

Residual Profits

The earnings that remain after deducting all costs, including the cost of capital, from revenues.

Debt Guarantee

An arrangement where a third party promises to assume the debt obligation of a borrower if that borrower defaults.