Chap 1

Question 1

Example of a trading business

Answer 1

Bookshop

Question 2

Example of a service business

Answer 2

Dental clinics

Question 3

features of a sole proprietor

Answer 3

• Has absolute control over the business
• Have minimal administrative duties to adhere to
• Business exists as long as the owner is alive and well

Question 4

Examples of stakeholders

Answer 4

Customers, Managers, Employees

Question 5

Role of accounting

Answer 5

An information system that provides accounting information for stakeholders to make informed decisions regarding the management of resources and performance of the business

Question 6

Role of accountant

Answer 6

Accountants set up an accounting information system and become stewards of the business. They have to provide timely, relevant, and credible information for decision-making.

Question 7

Professional ethics

Answer 7

Integrity and objectivity