fiscal year, 54 line of c net profit, 54 judgment, 56 REVIEW QUESTIONS 9. Where a customer has suffered a loss as a result of a mistake made by an employee of a sole 1. Which one or more of the following statements are proprietorship, that customer can look to the true concerning liability within the sole proprietorship bank account of the business and of the sole form of carrying on business? proprietor for compensation. a. An employee is fully liable for a loss suffered when they make a mistake within the range of 2. The question above refers to the responsibility of the their employment duties. sole proprietor and the business operated by the sole b. A sole proprietor is liable for a loss suffered proprietor for mistakes made by an employee. What when their employee makes a mistake within type of liability is involved here? the range of their employment duties. 3. What skills and qualities do you think are needed to c. A sole proprietor is liable only for mistakes be a sole proprietor? they made, and not for those made by their employee within the range of their employment 4. In this chapter, the word " deductible" has been used duties. in two different ways. Describe the context for each d. Where a customer has suffered a loss as a use in a way that indicates that you understand how result of a mistake made by an employee of they differ. a sole proprietorship, that customer can look 5. If the business operated by a sole proprietor is an to the bank account of only the business for compensation. extension of that proprietor, why is it recommended that they use a separate bank account for the e. Where a customer has suffered a loss as a result of a mistake made by an employee of business and set up files and financial records a sole proprietorship, that customer can look separate from their personal records? to the bank account of only the employee for 6. Zane began his organic market gardening operation compensation. as a sole proprietor. Sales, particularly to local f. Where a customer has suffered a loss as a result restaurants, increased much more quickly than of a mistake made by an employee of a sole he anticipated. He has hired one employee and is proprietorship, that customer can look to the bank account of only the sole proprietor for looking to bring on a second. Zane is thrilled with compensation. his success but wonders if he is limited to this form of doing business going forward. What should Zane consider