In which of the following financial statements would a retained earnings account be found?
a. Sole trader.
d. None of the options shown would contain a retained earnings account.
A partnership of three siblings would have how many capital accounts in the equity section of the balance sheet?
Which of the following is an advantage of being a sole trader?
a. The owner has total autonomy over business decisions.
b. The business is not a separate legal entity.
c. The owner has unlimited liability.
d. The business has limited life.
Partnerships should always have a Partnership Agreement in place to avoid potential disagreements.
If a partner in a partnership decides to leave or retire from the business, the partnership can continue on with no disruption or administrative changes.