Which of the Following Statements About a Sole Trader Is

question 29

Multiple Choice

Which of the following statements about a sole trader is NOT true?

• A)A sole trader may have difficulty in raising business capital.
• B)The sole trader must generally consult with customers,creditors and employees in deciding what the business will and will not do.
• C)Anyone with contractual capacity can be a sole trader.
• D)The liability of a sole trader is unlimited and personal.

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Definitions:

C2B

Consumer-to-Business, a business model where consumers create value or products that businesses purchase.

B2B

Business-to-Business, a model that involves transactions between two firms rather than between a firm and individual consumers.

Ordering Cost

The expenses incurred in placing and receiving orders for materials or products, including paperwork, communication, and transportation costs.

Idle Workers

Employees who are not actively engaged in production or work due to lacking assignments or efficiency breakdowns.