The Entity That Is Under No Legal Requirement to Prepare

question 34

Multiple Choice

The entity that is under no legal requirement to prepare a balance sheet is a:

• A) company.
• B) not-for-profit business.
• C) sole trader.
• D) partnership.

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Definitions:

Punishment

A consequence applied with the intent of reducing or eliminating an undesired behavior.

Employee Initiative

The ability and willingness of employees to take action and make decisions without explicit instruction or prompting from management.

Flexibility

The quality of being adaptable or variable, capable of changing or being modified according to circumstances.

Unpleasant Event

An occurrence that causes discomfort, distress, or dissatisfaction to an individual.