Applied Finance review #3

A company's income before interest and taxes are applied is called?

• gross earnings

• net profit

• net income

• operating income

What you give up when you make a choice is called?

• Opportunity Cost

• Law of Survival

• Deferment

• Best Choice

What is a business owned and operated by one person?

• Sole Proprietorship
• Partnership
• Corporation

What is a business owned by stockholders/investors but operated by others?

• Sole Proprietorship
• Partnership
• Corporation

What is ONE disadvantage of a Partnership?

• Easier to start
• Have to share the profits
• Help in making decisions

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the:

• Balance Sheet
• Income Statement
• Statement of Cash Flows
• None of These

The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the:

• Balance Sheet
• Income Statement
• Statement of Cash Flows
• Cash Statement

A tangible product is something that can be touched

• True

• False

An intangible product is something that cannot be touched

• True

• False

Tangible products usually require more money to produce than intangible products

• True

• False