A Sole Trader Form of Business Organisation

question 63

Multiple Choice

A sole trader form of business organisation:

• A) consists of one individual who controls and manages the business.
• B) must have at least two owners.
• C) combines the records of the business with the personal records of the owner.
• D) is classified as a separate legal entity.

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Definitions:

Vertical Analysis

A method of financial statement analysis in which line items are expressed as a percentage of a base figure within the same period.

Ford Motor Company

A multinational automaker headquartered in the United States, known for producing and selling automobiles and commercial vehicles under the Ford brand and luxury cars under the Lincoln brand.

Horizontal Analysis

An analytical approach to finance, examining historical financial records from several periods to spot growth trends and patterns.

Vertical Analysis

A technique for examining financial statements by presenting each item in the main categories of accounts (assets, liabilities, and equity) on a balance sheet as a fraction of the overall category.