Which One of the Following Statements Is NOT True

question 72

Multiple Choice

Which one of the following statements is NOT true?

• A) Setting up a company involves registering with ASIC.
• B) The simplest form of business structure is the sole trader.
• C) Only a company allows the employment of staff and subcontractors.
• D) In a partnership business profits are not taxed at the company tax rate

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Definitions:

Days In Inventory

Days in inventory is a financial metric that measures the average number of days a company holds inventory before selling it, indicating the efficiency of inventory management.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Dividend Yield

A metric indicating the annual dividends a firm distributes in relation to its share price.

Asset Turnover

A financial ratio indicating how efficiently a company uses its assets to generate revenue.