Accounting Self-Assessment Quiz

Name:_________________________ Period:____ Date:_________ Glencoe Accounting (First-Year Course) Chapter 2, Section 1

1.	One of the disadvantages of a sole proprietorship is
		all the profits go to the owner
		there are no lunch breaks
		the owner has all the risks
		there are few regulations to follow

2.	A corporation is a business organization that is recognized by law to
		pay no tax
		have a life of its own
		have an active social life
		have at least 3 owners

3.	A business owned by two or more people is called
		a corporation
		looking for trouble
		a partnership
		venture capital

4.	Money supplied by investors, banks, or owners of a business is called
		capital
		incurred expenses
		secondary alignment
		pin money

5.	The most common form of business organization is a
		corporation
		partnership
		sole proprietorship
		lemonade stand

6.	Those who transform ideas for products or services into real-world businesses are known as
		profit takers
		accountants
		entrepreneurs
		organizers

7.	A merchandising business
		buys raw materials and transforms them into finished products
		buys finished products and resells them
		provides a service for a fee
		all of the above

8.	A free enterprise system allows businesses to
		have their government choose their products
		produce the goods and services they choose
		buy goods at a discount
		operate at a profit