Sanford Lee Is Planning to Open a Pizza Parlour

question 27

Multiple Choice

Sanford Lee is planning to open a pizza parlour. He has a secret tomato sauce recipe that he does not want to divulge to anyone. Lee also wants to have sole responsibility for all business decisions. What sort of organization should Lee form?

• A) limited cooperative
• B) joint venture
• C) sole proprietorship
• D) limited partnership

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Definitions:

Chart Of Accounts

A list of the accounts in the ledger.

Balance Sheet

An accounting summary that captures a firm's financial status at a particular instant, outlining the company's resources, obligations, and equity held by shareholders.

Ledger

A book or collection of financial accounts where financial transactions are recorded.

Cash Payment

A transaction where a payment is made using physical currency or through electronic funds transfer, directly settling an obligation.