Business Quiz

Indicate whether the statement is true or false. Only businesses that earn a profit will have the economic resources to continue to operate.

• True

• False

Indicate whether the statement is true or false. All types of businesses sell a product.

• True

• False

Indicate whether the statement is true or false. In a free enterprise system, businesses compete for customers.

• True

• False

Indicate whether the statement is true or false. One advantage of owning your own business is that any financial gain from operating the business is yours.

• True

• False

Indicate whether the statement is true or false. For accounting purposes, a business is an entity separate from its owners.

• True

• False

Indicate whether the statement is true or false. A business owner must always get permission to operate from the state government.

• True

• False

Indicate whether the statement is true or false. Basic accounting rules and procedures differ from business to business.

• True

• False

Indicate whether the statement is true or false. The corporation is the easiest form of business to organize.

• True

• False

Indicate whether the statement is true or false. All businesses set up their accounting systems in the same manner.

• True

• False

Indicate whether the statement is true or false. Corporations often start out as sole proprietorships or partnerships.

• True

• False