BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following refers to a sole proprietorship business?
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Limited liability
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Capital contributed solely by owner
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Share profit or loss among partners
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Income not subject to tax
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Explanation:
Detailed explanation-1: -No capital contribution is required to establish a sole proprietorship.
Detailed explanation-2: -An owner can either be a person or a legal entity that is the legal proprietor of a business. For example, a corporation (a legal entity) can be the owner of one or more companies. A sole proprietor specifically refers to the individual owner (proprietor) of a business being run as a sole proprietorship.
Detailed explanation-3: -The term “owner’s equity” is typically used for a sole proprietorship. It may also be known as shareholder’s equity or stockholder’s equity if the business is structured as an LLC or a corporation.
There is 1 question to complete.