Which of the Following Statements About a Sole Trader Is

question 25

Multiple Choice

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

• A)Anyone capable of entering into a contract can operate a business as a sole trader.
• B)A sole trader may have difficulty in raising business capital.
• C)Sole traders have unlimited liability for the debts of the business.
• D)The business of a sole trader can sue and be sued in its own name.

---

Definitions:

Opportunity Cost

When one choice is made, it results in missing out on the potential benefits of other alternatives.

Rubber Bands

Rubber bands are stretchable loops of rubber used to hold objects together; not typically significant in economic or business contexts unless considering their manufacturing or supply industries.

Paper Clips

Small pieces of bent wire or plastic used for holding sheets of paper together.

Trading Partner

Refers to entities (can be countries, corporations, or other organizations) that engage in trade with each other, exchanging goods, services, or financial instruments.