TOPIC 3, SCE Flashcards
there is only one owner of the
business.
Sole Proprietorship
the claim of the creditors of the business extends to
the personal assets of the owner.
Sole Proprietorship
owned by two or more owners called
partners.
Partnership
the claims of the partnership creditors may
extend to the partner’s personal assets.
Partnership
is the most complex form of
business organization.
Corporation
ownership is divided into common stocks or
shares of stocks.
Corporation
shareholders are not normally involved in
the day to day operations of the corporations.
Corporation
True or false.
A business owned by more than one owner
is a partnership.
True
True or False
Partnership is the simplest form of business.
False
True or False
corporation is the most complex form of business
organisation
True
True or False
A stockholder that owns 100 stocks has 100 votes.
True
True or False
In sole proprietorship, the claim of the creditors of
the business extends to the personal assets of the
owner.
True
True or False
Business creditors can always lay claim on the
personal assets of the owners
False
True or False
Statement of changes is a statement dated “as of
date”.
False
True or False
The SoCE is prepared to meet the requirements of
the readers to understand the transactions that
caused the movements in equity accounts.
True
