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BSNS114 Exam Study Guide with Questions and 100% Correct Answers

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Advantages of sole proprietorship - Answer Simple, inexpensive, no sharing of profits, taxed as personal income Disadvantages of sole proprietorship - Answer Limited capital, costly to transfer ownership, unlimited liability Advantages of partnership - Answer Two or more owners, more capital, easy to start, taxed as personal income

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BSNS114 Exam Study Guide with Questions
and 100% Correct Answers

Advantages of sole proprietorship - Answer Simple, inexpensive, no sharing of profits,
taxed as personal income


Disadvantages of sole proprietorship - Answer Limited capital, costly to transfer
ownership, unlimited liability


Advantages of partnership - Answer Two or more owners, more capital, easy to start,
taxed as personal income


Disadvantages of partnership - Answer Unlimited liability, dissolves when a partner dies
or wished to sell, difficult to transfer ownership


Advantages of corporation - Answer Separate from owners legal entity, easy transfer of
ownership, limited liability


Disadvantages of corporation - Answer Separation of ownership and management can
create conflict


Time value of money - Answer Money today is worth more than the same amount in the
future


Time value of money is due to: - Answer Potential earning capacity


Determinant of growth of money - Answer Interest rate

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