An Advantage of Operating as a Sole Trader Is

question 20

Multiple Choice

An advantage of operating as a sole trader is:

• A) the owner claims all the profits if the business is sold.
• B) the business is limited by the skill, time and investment of the owner.
• C) the business is not a separate legal entity.
• D) the owner has unlimited liability.

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Definitions:

Generally Accepted Accounting Principles

A set of accounting standards and procedures that are used in the United States to govern financial reporting and accounting.

Managerial Accounting Reports

Financial reports that provide detailed and specific information to a company's management to aid in decision making, planning, and controlling activities.

Organization Chart

A diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.

Operating Structure

The functional and organizational setup of a company, encompassing its business operations, divisions, and the relationships between various departments.