Basic Concepts of Business Ownership and Financial Responsibility Quiz Test your knowledge on sole proprietorship, partnerships, financial statements, ROI, and more. Learn fundamentals of business ownership & financial responsibility.
#1
Limited liability
Unlimited liability
Separate legal entity
Complex taxation
#2
Limited liability
Ease of formation
Single taxation
Legal separation
#3
Limited liability
Ease of formation
Unlimited liability
Sole ownership
#4
Income statement
Balance sheet
Profit and loss statement
Statement of cash flows
#5
It has unlimited liability
It is considered a separate legal entity
It is owned by shareholders
It requires only one owner
#6
Income statement
Balance sheet
Cash flow statement
Statement of retained earnings
#7
Return on Investment
Revenue over Interest
Rate of Inflation
Relative Operating Income
#8
To show a company's revenues and expenses over a period
To provide a snapshot of a company's financial position
To detail the sources and uses of cash during a specific period
To report changes in retained earnings over time
#9
Depreciation
Amortization
Liquidity
Reconciliation
#10
To predict future financial performance
To record and summarize business transactions
To analyze market trends
To manage internal operations
#11
A purchase of shares on the stock market
A type of merger involving two companies of similar size
A restructuring of a company's capital structure using debt
A method of raising capital through venture capitalists
#12
The use of debt to increase returns to shareholders
The ratio of equity to debt in a company's capital structure
The ability of a company to generate profits from its assets
The process of reducing financial risk through diversification
#13
Higher interest rates
Fixed maturity date
No obligation to repay principal
Lower interest expense
#14
To develop marketing strategies
To manage human resources
To maximize shareholder wealth
To oversee production processes
#15
To increase shareholder wealth
To minimize the impact of exchange rate fluctuations
To maximize market share
To optimize production processes
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