Business Concepts Quiz

What is a sole proprietorship?

• A business owned and managed by a single individual

• A business owned by a corporation

• A business owned by two or more partners

• A business owned by the government

What does liability refer to in a business context?

• A legally bound obligation to pay debts

• A type of business profit

• A form of business ownership

• A method of increasing sales

What are fringe benefits?

• Payment other than wages or salaries

• The main salary of an employee

• A type of business tax

• A form of business liability

What is a partnership in business terms?

• A business organization owned by two or more persons

• A business owned by a single individual

• A business owned by a corporation

• A business owned by the government

What is an income statement?

• A report showing a business’s sales, expenses, net income, and cash flows for a period of time

• A document detailing a company's assets and liabilities

• A summary of a company's tax obligations

• A list of a company's employees and their salaries

What does depreciation refer to in a business context?

• A cash charge for the purchase of new equipment

• A noncash charge for the general wear and tear on capital goods

• A reduction in the number of employees

• An increase in the value of a company's stock

What is cash flow?

• The total revenue from sales

• The sum of net income and noncash charges such as depreciation

• The amount of cash a company has in its bank account

• The total expenses of a company

What is an entity in a business context?

• A group of employees working together

• A unit or being with distinct and independent existence

• A department within a company

• A type of financial statement

What defines a corporation?

• A small business owned by one person

• A form of business organization recognized by law as a separate legal entity with all the rights of an individual

• A partnership between two or more companies

• A temporary business arrangement for a specific project

What is the term for the amount borrowed when getting a loan or issuing a bond?

• Interest

• Principal

• Dividend

• Equity