Which of the Following Statements Is Correct

question 1

Multiple Choice

Which of the following statements is correct?

• A) Sole traders pay income tax as individuals but there is no taxation on the profits of the business itself
• B) On the accounts of a sole trader, retained earnings and capital are usually kept separate
• C) The owners of limited companies receive payment as "drawings"
• D) None of the above statements are correct

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Definitions:

Business Analysis

The practice of identifying business needs and determining solutions to business problems, often involving the evaluation of business structure, processes, and operations.

Product Development

The process of creating, designing, and bringing a new product to the market.

Prototype

A mock-up of a good, often created individually with the materials the firm expects to use in the final product.

Mock-Up

A full-size model of a design or device, used for product presentations or to evaluate a concept.