Chapter 1, Problem 17.2EC

A common disadvantage of a sole proprietorship is a) that the owner must share profits with others. b) double taxation of earnings. c) the limited life of the business. d) difficulty starting the business.

Which of the following can be used to offset a passive loss? a.Dividend income from stock held as an investment b.Active income such as wages c.Pension income d.Passive income such as income from a limited partnership

Which of the following is true about this statement: "In a sole proprietorship, the owner's personal assets are at risk if the business is not successful." Is this true?   a) No, personal assets are protected by sole proprietorship laws.   b) Yes, there is no protection for personal assets with sole proprietorships.   c) No, personal assets are only at risk with corporations.   d) Yes, this is true for all forms of business.

Which of the following capital losses can be used to offset a capital gain made from the sale of an investment property? Select one:Capital loss made on the sale of a rare coinCapital loss made on the sale of a main residenceCapital loss made on the sale of a boatCapital loss made on the sale of sharesCapital loss made on the sale of an artwork

How can the separate entity concept benefit the owner and the business

What are the possible actions when a business becomes insolvent?

46. The allocation of owner's private expenses to his/her business violates which of the following? A.O Accrual concept B.Matching concept C.Separate business entity concept D.Consistency concept

Two disadvantages of a proprietorship are (1) the relative difficulty ofraising new capital and (2) the owner's unlimited personal liability forthe business' debts.a.Trueb.False

React to this statement and cite an example “Whether or not it actually makesprofits is immaterial. An entity is still a business if it is objective is to make profit.