#1
Which of the following is not a type of business entity?
Sole proprietorship
Partnership
Cooperative
Employee
#2
In a corporation, who are the owners of the company?
Board of Directors
Shareholders
Employees
Creditors
#3
Which of the following statements about stakeholders in accounting is true?
Stakeholders only include shareholders
Stakeholders have no interest in the financial performance of the business
Stakeholders may include creditors, employees, and government agencies
Stakeholders have no influence on business decisions
#4
What is the primary role of government agencies as stakeholders in accounting?
To provide funding to the business
To regulate and oversee business activities
To promote the business through advertising
To manage internal operations of the business
#5
What distinguishes a corporation from other business entities?
Unlimited liability for owners
Ease of formation
Separate legal entity status
Limited number of shareholders
#6
Which of the following business entities is characterized by unlimited liability for its owners?
Corporation
Limited Liability Company (LLC)
Partnership
Sole Proprietorship
#7
What is the main advantage of a limited liability company (LLC)?
Limited liability for owners
Unlimited liability for owners
Tax advantages
Ease of formation
#8
Which of the following is not a characteristic of a sole proprietorship?
Limited liability for the owner
Simple to establish
Owner has full control over decision-making
Owner is personally responsible for business debts
#9
What is the primary advantage of a partnership over a sole proprietorship?
Limited liability for the owners
Ease of formation
Access to more capital and resources
Tax advantages
#10
In a corporation, who is responsible for making major decisions and setting company policies?
Board of Directors
CEO
Shareholders
Employees
#11
In a partnership, how are profits and losses typically shared among partners?
Equally
Based on initial investment
Based on ownership percentage
Randomly
#12
Which of the following stakeholders has the highest priority in the event of business liquidation?
Employees
Creditors
Shareholders
Government agencies
#13
Which stakeholder typically has the most influence on the day-to-day operations of a business?
Shareholders
Creditors
Board of Directors
Management
#14
What is the primary reason for a business to choose a partnership structure over a corporation?
Limited liability
Ease of formation
Access to capital markets
Tax advantages
#15
In a limited liability company (LLC), how are profits typically distributed among members?
Based on initial investment
Equally
Based on ownership percentage
At the discretion of management