Explain what is involved in starting a business as a sole proprietor and the advantages to choosing this form of ownership
What will be an ideal response?
A person starts business as a sole proprietor by simply collecting income for a product or a service by him or herself. The advantages of establishing a business as a sole proprietor include the ease of start-up, minimal forms, no special taxes, no special government reporting and filing, and full control of management and operations.
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Which of the following companies would be most likely to use the retail method?
A) An auto dealer B) A computer service company C) A clothing store D) A restaurant supply company
Registration calls for disclosure of which of the following?
A) A description of the registrant's properties and business. B) A description of the significant provisions of the security to be offered for sale and its relationship to the registrant's other capital securities. C) Financial statements certified by independent public accountants. D) All of these.
Why is it important to monitor your debt level?
A) So it does not become so high that you cannot cover the monthly payments B) So that you maintain a liquidity ratio of at least 2.5 C) In order to qualify for another credit card to capture the introductory points D) So that your total debt does not exceed your annual income
The developed nations of the world agreed to ozone protection by eliminating CFC's. To do this, they set up a fund to:
a. support advertising in the developed world to champion the elimination of CFCs b. provide subsidy payments to manufacturers of CFCs so that the phase-out of the products will be less painful c. research alternate forms of refrigerants d. build a space station designed to study the effects of ozone depletion e. none of the other choices