Appendix: Business Basics

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Question 1
Free
Multiple Choice

What occurs when businesses sell products or services for more than they cost to produce?

Choose correct answer/s
A

Expense

B

Profit

C

Loss

D

Revenue

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Question 2
Free
Multiple Choice

What refers to the amount earned resulting from the delivery or manufacture of a product or from the rendering of a service?

Choose correct answer/s
A

Expense

B

Profit

C

Loss

D

Revenue

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Question 3
Free
Multiple Choice

Which of the following is not a type of business?

Choose correct answer/s
A

Sole partnership

B

Partnership

C

Limited partnership

D

Corporation

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Question 4
Free
Multiple Choice

Which form of business recommends a legal agreement between two or more business partners that outlines core business issues?

Choose correct answer/s
A

Sole proprietorship

B

Partnership

C

Corporation

D

LLC

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Question 5
Free
Multiple Choice

What is the fundamental difference found in a limited partnership?

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A

Only one partner is responsible for all of the partnership's losses

B

Both partners are responsible for all of the partnership's losses

C

Both partners are protected from being responsible for all of the partnership's losses

D

None of these

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Question 6
Multiple Choice

Partnership agreements typically include all of the following,except:

Choose correct answer/s
A
Expectations for sharing profits and losses
B
Partner's salary requirements
C
Methods for conflict resolution
D
Shareholder's expectations for a successful business
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Question 7
Multiple Choice

What is a hybrid entity that has the legal protections of a corporation and the ability to be taxed (one time)as a partnership?

Choose correct answer/s
A
Limited partnership
B
Limited liability corporation
C
Limited proprietorship
D
Limited shareholder
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Question 8
Multiple Choice

What analyzes the transactional information of the business so the owners and investors can make sound economic decisions?

Choose correct answer/s
A
Accounting
B
Bookkeeping
C
Financial Accounting
D
Managerial Accounting
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Question 9
Multiple Choice

What involves preparing financial reports that provide information about the business's performance to external parties such as investors,creditors,and tax authorities?

Choose correct answer/s
A
Accounting
B
Bookkeeping
C
Financial accounting
D
Managerial accounting
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Question 10
Multiple Choice

What involves analyzing business operations for internal decision making and does not have to follow any rules issued by standard-setting bodies such as GAAP?

Choose correct answer/s
A
Accounting
B
Bookkeeping
C
Financial accounting
D
Managerial accounting
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Question 11
Multiple Choice

What describes the basic transaction data such as its date,purpose,and amount and includes cash receipts,canceled checks,invoices,customer refunds,employee time sheet,etc.?

Choose correct answer/s
A
Balance sheet
B
Source document
C
Transaction
D
Financial statement
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Question 12
Multiple Choice

Which of the following financial statements gives an accounting picture of property owned by a company and of claims against the property on a specific date?

Choose correct answer/s
A
Balance sheet
B
Statement of owner's equity
C
Statement of cash flows
D
Income statement
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Question 13
Multiple Choice

What reports operating results (revenues minus expenses)for a given time period ending at a specified date?

Choose correct answer/s
A
Balance sheet
B
Statement of owner's equity
C
Statement of cash flows
D
Income statement
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Question 14
Multiple Choice

What tracks and communicates changes in the shareholder's earnings?

Choose correct answer/s
A
Balance sheet
B
Statement of owner's equity
C
Statement of cash flows
D
Income statement
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Question 15
Multiple Choice

What is an asset?

Choose correct answer/s
A
A distribution of earnings to shareholders
B
Refers to the amount earned resulting from the delivery or manufacture of a product or from the rendering of a service
C
Refer to the costs incurred in operating and maintaining a business
D
Anything owned that has value or earning power
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Question 16
Multiple Choice

What is a dividend?

Choose correct answer/s
A
A distribution of earnings to shareholders
B
Refers to the amount earned resulting from the delivery or manufacture of a product or from the rendering of a service
C
Refer to the costs incurred in operating and maintaining a business
D
Anything owned that has value or earning power
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Question 17
Multiple Choice

What is revenue?

Choose correct answer/s
A
A distribution of earnings to shareholders
B
Refers to the amount earned resulting from the delivery or manufacture of a product or from the rendering of a service
C
Refer to the costs incurred in operating and maintaining a business
D
Anything owned that has value or earning power
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Question 18
Multiple Choice

What is the function of the marketing department?

Choose correct answer/s
A
Deals with the strategic financial issues associated with increasing the value of the business while observing applicable laws and social responsibilities
B
Includes the policies, plans, and procedures for the effective management of employees
C
The function of selling a good or service and focuses on increasing customer sales, which increases company revenues
D
The process associated with promoting the sale of goods or services. The marketing department supports the sales department by creating promotions that help sell the company's products
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Question 19
Multiple Choice

What is the function of the sales department?

Choose correct answer/s
A
Deals with the strategic financial issues associated with increasing the value of the business while observing applicable laws and social responsibilities
B
Includes the policies, plans, and procedures for the effective management of employees
C
The function of selling a good or service and focuses on increasing customer sales, which increases company revenues
D
The process associated with promoting the sale of goods or services. The marketing department supports the sales department by creating promotions that help sell the company's products
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Question 20
Multiple Choice

What is the rate at which the net present value of an investment equals zero?

Choose correct answer/s
A
Internal rate of return (IRR)
B
Return on investment (ROI)
C
Cash flow analysis
D
Break-even analysis
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