New Chapter 1

Question 1

What are the advantages and disadvantages of owning a sole proprietorship?

Answer 1

Disadvantages: personal liability and difficult to raise funds.

Question 2

What are the advantages and disadvantages of owning a partnership?

Answer 2

Disadvantages: personally labile, difficult to raise funds.

Question 3

What are the advantages and disadvantages of owning a corporation?

Answer 3

Disadvantages: taxed

Question 4

What are the three types of business activites?

Answer 4

1. ) Financing: Raising money
2. ) Operating: Getting to work
3. ) Investing: buying big stuff

Question 5

What is contained in the annual report?

Answer 5

1. ) Financial statements.
2. ) Notes to financial statements
3. ) MD & A
4. ) Independent Auditors report.

Question 6

How does the balance sheet differ from the other financial statements in terms of the time it captures?

Answer 6

The balance sheet represents a specific point in time.

Given day on a given year.