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Samantha Has a Talent for Making Attractive but Inexpensive Jewellery

question 44

Multiple Choice

Samantha has a talent for making attractive but inexpensive jewellery and wants to set up a small business to sell some of her creations.She asks for your advice about setting up her firm,telling you that she wants to start her business as quickly and inexpensively as possible.In addition,she doesn't want to share control (or profits) with anyone else.Which form of business ownership would you suggest for Samantha?


Definitions:

Initial Value Method

An accounting method used to record investments at their acquisition cost.

Noncontrolling Interest

A minority stake in a company that is not large enough to exercise control over its operations or policies.

Net Income

Profit calculated as total revenues minus total expenses, interest, and taxes, representing how much the company earned or lost.

Initial Value Method

An accounting method where investments are recorded at their purchase cost without reflecting market value changes over time.

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