Basic Financial Terms – Assessments- 7

What is the primary objective of a business?

• Make money for investors by providing goods or services

• Make money for retailers by providing goods for services

• Make money for customers by providing goods or services

• Make money for employees by providing goods or services

What are the key inputs of business?

• Labour

• Land

• Capital

• All of the given

What is the output of the business?

• Goods

• Services

• Both of the above

• Neither is correct

What are the different forms of business?

• Sole proprietorship, Partnership, Corporations

• Sole proprietorship, Partnership, Commemoration

• Sole presidentship, Partnership, Commemoration

• Sole proprietorship, Friendship, Corporations

What is a Sole proprietorship?

• A single owner who is also usually responsible for the day-to-day running of the business

• A single employee who is also usually responsible for the day-to-day running of the business

• A single retailer is also usually responsible for the day-to-day running of the business

• A single partner who’s also usually responsible for the day-to-day running of the business

___________ has multiple owners or partners, some of whom are also usually responsible for the day-to-day running of the business.

• Friendship

• Presidentship

• Partnership

• Corporations

What is a corporation?

• A separate legal entity with a large number of owners

• A separate illegal entity with a large number of owners

• Multiple owners or partners, some of whom are also usually responsible for the day-to-day running of the business

• All of the above.

Identify a non-example of accounting?

• How much value in rupees of goods or services has the business sold

• List of investments in land, facilities, buildings, etc. the business made

• Costs the business incurred.

• List and details of favourite customers

_________________ is about planning for the uncertain future and deciding what kind of investments should the business make.

• Finance

• Governance

• Maintenance

• Dominance

___________is a way for a business to raise capital but there is no obligation to repay entities that provide capital. Instead, entities are given ownership of the business.

• Liabilities

• Equity

• Partnership

• Assets