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Test-Bank-for-Financial-Accounting-A-Business-Process-Approach-3rd-Edition-by-Reimers

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1.1-1) The ownership structure of a business includes the following forms ________. A) individual, group, and corporate B) sole proprietorship, partnership, and corporation C) service, manufacturin... g, and financial D) debtors, creditors, and owners Answer: B Diff: 1 Objective: LO 1-1 1.1-2) Which of the following is true about a sole proprietorship? A) A sole proprietorship is a company owned by two or more individuals. B) The owner's liability is limited to the amounts invested in the business. C) Income from a sole proprietorship is distributed to the owner in the form of a dividend. D) The income from a sole proprietorship is taxed on the owner's personal income tax return. Answer: D Diff: 2 Objective: LO 1-1 1.1-3) A partnership agreement ________. A) exempts partners from unlimited liability B) establishes the partnership as a separate legal entity C) details how much work partners will do and how they will split up the profits D) defines how many shares of stock the partnership may sell to investors Answer: C Diff: 3 Objective: LO 1-1 1.1-4) The two types of merchandising businesses include ________. A) wholesale and retail B) service and financial C) manufacturing and retail D) service and wholesale Answer: A Diff: 2 Objective: LO 1-1 Download the full file instantly at http://testbankinstant.com Full file at http://testbankinstant.CH/Test-Bank-for-Financial-Accounting-ABusiness-Process-Approach-3rd-Edition-by-Reimers 1.1-5) The inputs of a firm include ________. A) revenues B) liabilities C) inventory and supplies D) All of these are correct. Answer: C Diff: 1 Objective: LO 1-1 1.1-6) A corporation ________. A) is a legal entity separate from the owners B) is a manufacturer and not a service organization C) may cause unlimited liability for its shareholders D) provides goods or services for the sole purpose of helping people Answer: A Diff: 1 Objective: LO 1-1 1.1-7) Corporations are ________. A) for-profit businesses only B) manufacturers and not service organizations C) owned by shareholders D) exempt from legal liability Answer: C Diff: 1 Objective: LO 1-1 [Show More]

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