Quiz on Accounting Information Systems

What does "run your own business independently" mean in a sole proprietorship?

• You have partners

• You work for someone else

• You make all the decisions yourself

• You follow government orders

What is one advantage of a sole proprietorship?

• All profits are subject to the owner

• Owner is 100% liable for business debts

• Equity is limited to the owner’s personal resources

• Ownership is difficult to transfer

What is a disadvantage of a sole proprietorship?

• Very few requirements for starting

• Owner is 100% liable for business debts

• Owners have total flexibility

• All profits are subject to the owner

What is limited to the owner’s personal resources in a sole proprietorship?

• Equity

• Profits

• Flexibility

• Regulations

Who is responsible for business debts in a sole proprietorship?

• The owner

• The employees

• The government

• The customers

What are the two varieties of partnerships mentioned?

• Limited and General

• Small and Large

• Public and Private

• Local and International

What does a certificate of collaboration with the state provide for limited partnerships?

• Unlimited liability

• A ceiling on personal liability

• More partners

• Higher profits

What does each partner share in a partnership?

• Total profits of the company

• Only losses

• Only debts

• Only responsibilities

What is morality according to the document?

• Someone’s perception in what is right

• A set of rules everyone follows

• A type of law

• A personal feeling

What is a combination of norms and values that individuals or groups want to realize?

• Morality

• Ethics

• Laws

• Rules