Acca financial Accounting (FA) Study Text ac ca (FA)

Test your understanding 1 

 

Which of the following users do you think require the most detailed 

financial information to be made available to them? 

A Competitors 

B 

Management of the business 

C Trade 

unions 

D Investors 

3 

Types of business entity 

A business can be operated in one of several ways: 

Sole trader 

This is the simplest form of business where a business is owned and operated 

by one individual, although it might employ any number of people. With this 

form of entity there is no legal distinction between the owner and the business. 

To this end the owner receives all of the profits of the business but has 

unlimited liability for all the losses and debts of the business. 

 

 

---