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Worksheets

Business Organization and Structure

Total questions: 55

Worksheet time: 2hrs 27mins

Name
Class
Date
1.

What kind of business is BEST described by these statements?

I am the only owner of my business.

I take all the risks of doing business.

I keep all the profits.

a)

Partnership

b)

Cooperative

c)

Corporation

d)

Sole proprietorship

2.

An entrepreneur is who

a)

enforces government regulations

b)

takes the risk to earn profit

c)

sets the interest rates at banks

d)

manages financial investments

3.

A form of business organization that is authorized to act as a legal entity regardless of the number of owners.

a)

Company

b)

Partnership

c)

Sole proprietorship

d)

Distributor

4.

What is a disadvantage of a partnership?

a)

Ease of formation

b)

Limited liability

c)

Owners share responsibilities

d)

Possibility of personality conflict

5.

Nike, Fashion Valet, and Google are examples of

a)

Partnership

b)

Sole proprietorship

c)

Company

d)

Self business

6.

One of the advantages of a sole trader business is that

a)

owners have limited liability

b)

decisions and responsibilities can be shared

c)

shares can be sold to raise capital

d)

the owner has complete control over decision making

7.

The owners of a corporation are called

a)

Directors

b)

Shareholders

c)

Partners

d)

Founders

8.
An advantage of a corporation is that
a)
owners pay fewer taxes than owners of other forms of business.
b)
the business is subject to little government regulation.
c)
owners have limited liability for debt.
d)
owners have direct and immediate control over daily management of the business.
9.
Susan, Phil, Robert, and Martina are all lawyers. After several years of working for big firms, they decide to pull their resources and start their own law practice together. The four of them will make all their business decisions together and will share all of the profits and financial risk. Their new law firm is a 
a)
partnership
b)
corporation
c)
sole proprietorship
d)
monopoly
10.
Which market has no competition?
a)
perfect competition
b)
oligopoly
c)
monopoly
d)
monopolistic competition
11.
A ________ must name a board of directors that will make the major policy and financial decisions for the business.
a)
limited liability company
b)
proprietorship
c)
corporation
d)
limited liability partnership
12.
The people who make the major policy and financial decisions in a corporation are the 
a)
investors
b)
board of directors
c)
managers
d)
owners
13.

The easiest form of business to start and end is a(n)

a)

limited liability partnership

b)

corporation

c)

franchise

d)

proprietorship

14.

What is the advantage of corporations?

a)

has one owner

b)

limited liability

c)

minimal government regulation

d)

short life span

15.

Which of the following is the definition for Partnership?

a)

business investment that involves renting or leasing another successful business model

b)

unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the United States

c)

unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm

16.

Which of the following is an advantage of a Franchise?

a)

a nationwide network that had a respected product, a deep product line, excellent quality standards, nationwide advertising, and professional advice whenever needed.

b)

the ease of raising financial capital through stocks, bonds, and loans.

c)

the ease of management between two or more partners.

17.
Which of the following is NOT one of the six basic activities that all businesses perform?
a)
raising capital
b)
buying goods and services
c)
conserving resources
d)
generating ideas
18.
__________ are precise statements of results a business expects to achieve.
a)
Goals
b)
Policies
c)
Strategies
d)
Articles of Incorporation
19.
Which of the following is not a fundamental principle that guides the effective organization of work?
a)
accountability
b)
responsibility
c)
authority
d)
moderation
20.
Unity of command means there is 
a)
a single person in charge of a business
b)
an overall plan that tells each employee what to do
c)
a clear reporting relationship for all staff of a business
d)
 a way for ideas to flow from employees to managers
21.
Which of the following is not shown on an organizational chart?
a)
the structure of an organization
b)
work relationships
c)
job descriptions
d)
classification of jobs
22.

_____ defines how job tasks are formally divided, grouped, and coordinated.

a)

Organizational structure

b)

work speacialization

c)

Departmentalization

d)

Organizational behavior

23.

Work specialization is the same as _____.

a)

a. departmentalization

b)

b. division of labor

c)

c. decentralization

d)

d. job grouping

24.

The basis by which jobs are grouped together is termed _____.

a)

bureaucracy

b)

specialization

c)

centralization

d)

departmentalization

25.

The _____ refers to the number of subordinates that a manager directs.

a)

A. span of control

b)

B. unity of command

c)

C. chain of command

d)

D. decentralization principle

26.

What is the characteristics of managerial accounting information?

a)

Accuracy

b)

Timeliness

c)

Relevance

d)

All of above

27.

What is the roles of management accountant?

a)

Provide information and accounting reports

b)

Responsible for carrying out the task of helping the management

c)

Assist departments in achieving the organization objectives.

d)

All of above

28.

Which of the following describe the operational audit?

a)

A. In attempts and is designed to verify the fair presentation of a company’s results of operations.

b)

B. It concentrates on seeking out aspects of operations in which waste would be reduced by the introduction of controls.

c)

C. It requires the constant review by internal auditors of the administrative controls as they relate to operations of the company.

d)

D. It concentrates on implementing financial and accounting control in a newly organized company.

29.

Which of the following statements is not a distinction between external auditors and internal auditors?

a)

A. Independent auditors represent third party users external to the auditee entity, whereas internal auditors report directly to management.

b)

B. Internal auditors are employees of the auditee, whereas independent auditors are independent contractors

c)

C. Although independent auditors strive for both validity and relevance of evidence, internal auditors are concerned almost exclusively with validity.

d)

D. The internal auditor’s span of coverage goes beyond financial auditing to encompass operational and performance auditing

30.

Which of the following statements does not describe a condition that creates a demand for auditing?

a)

A. Expertise is often required for information preparation and verification.

b)

B. Conflict between an information preparer and a user can result in biased information.

c)

C. Information can have substantial economic consequences for a decision-maker.

d)

D. Users can directly assess the quality of information.

31.

What are the nature and scope of audit work?

a)

Reasonable precautions to safeguard collection and custody of public money.

b)

Payments made with proper authority supported by sufficient vouchers.

c)

Due care has been taken into account for proper use, control, maintenance and disposal of all public stores.

d)

All of the above.

32.

Select the evidence of auditing the revenue and expenditure

a)

May be in debts or equity securities

b)

Payments received for goods and services

c)

Liquid notes and coins

d)

Bank statements

33.

Choose audit objective

a)

Validity

b)

Accuracy

c)

Completeness

d)

Properly recorded

34.

Traditionally, confirmations are used to verify:

a)

bank balances and accounts receivables.

b)

fixed asset additions

c)

individual transactions between organizations, such as sales transactions.

d)

all three of the above

35.

Auditor unique role is for the following expertise except for

a)

A. Determining proper audit procedure

b)

B. Provide relevant information on economic event

c)

C. Deciding the number and types of items to test evidence

d)

D. Evaluating audit results

36.

Which of the following describe the true relationship between auditor, client and external users?

a)

A. Management provides capital to external users and auditor is hired to provide report relied upon by users for assurance.

b)

B. External users rely on auditor’s report assurance to reduce information risk provided by management

c)

C. Auditor ensure report are based on management decision on the economic event to be presented to external users

d)

D. Management and auditor provide financial statement to external users

37.

The distinction between the role of auditor and accountant can be best describe as

a)

A. Accountant provide financial information for decision making while auditor determine whether the information properly reflects the economic events of the accounting period.

b)

B. Accountant must have a thorough understanding of the principles and rules to prepare financial statement while auditor rely on the theory of evidence to verify the financial statement.

c)

C. Auditor is responsible for detection and prevention of error and frauds while accountant ensure the credibility and quality dimension of financial statement.

d)

D. Auditor must possess expertise in the accumulation and interpretation of audit evidence while accountant need to be expert in understanding the principles and rules.

38.
Define computer security measure
a)
Security measures is the action that could cause a loss or damage to computer hardware and software
b)
Security measure is code of acceptable behaviours users should follow while in the Internet
c)
Security measures is the protections that can reduce the risk of a problem occuring due to the computer security risk
d)
Security measures is the use of computer network, file or other resources without permission
39.
Identify the method and example to overcome the following security risk.
Teng Looi wants to protect her assignment that she keeps in her computer folder.
a)

Install firewall

b)

Using data backup

c)

Install Antivirus

d)

Using cryptography

40.
You want a new computer. What can you do to prevent others from accessing your confidential data in this computer?
a)
Set a user name and password
b)
Use an uninterruptible power supply (UPS) and a surge protector
c)
Back up data and save it in a different location
d)
Install a spyware program and an antivirus program
41.
__________ means hidden writing, the practice of using to conceal text. 
a)
Antivirus
b)
Data Backup
c)
Anti Spyware
d)
Cryptography
42.
Most ________ programs also protects against worms and Trojan horses. 
a)
firewall
b)
antivirus
c)
antispyware
d)
data backup
43.
Which of the following can be used to protect a network?
a)
Firewall
b)
Blocker
c)
Server
d)
Client
44.
Traffic can be secured over a network by applying what?
a)
Encryption
b)
Hashing
c)
CRC
d)
IP addressing
45.

Which of the following are ways to make a system more secure?

a)

Add different access levels for different users

b)

Lock the door

c)

Disconnect from the Internet

d)

Use a firewall

e)

Pray at the altar of Lord Securitron the Omniscient

46.

What is the best way to protect intercepted transmissions being read by a third party?

a)

Encryption

b)

Digital Signatures

c)

Hiding the message

d)

Only sending a single word at a time

47.

Access control system, CCTV and security guards are form of:

a)

A. Access control

b)

B. Environment security

c)

C. Physical security

d)

D. Compliance

48.

What controls can you do to protect sensitive data in your computer when you go out for lunch ?

a)

A. You activate you favorite screen - saver

b)

B. you turn off the monitor

c)

C. You lock your computer by pressing Windows+L or CTRL-ALT-DELETE and then Click " Lock Computer"

d)

D. You are confident to leave your computer screen on since a password protected screensaver is installed and it is set to activate after 10 minutes of inactivity.

49.

It ensures that the system protects the information from an authorised users. This meaning refer to goal of security of

a)

Non-repudation

b)

Availability

c)

Integrity

d)

Confidentiality

50.
Which is NOT a physical security control?
a)
A door lock
b)
A camera
c)
A computer lock
d)
Anti-virus software
51.
What type of authentication method identifies and recognizes people based on physical traits such as fingerprints?
a)
digital certificates
b)
WEP
c)
biometrics
d)
RADIUS
52.

What is the most important goal of fraud prevention and detection in the Financial Services industry?

a)

Increase security and trust

b)

Reduce liability

c)

Create more efficient fraud detection practices

d)

Ensure compliance with data privacy regulations

53.

What are some of the techniques used for fraudulent activity detection in the Financial Services industry?

a)

Regular review of accounts and transactions.

b)

Verifying customer identification.

c)

Evaluating customer behaviors.

d)

Ensuring secure payment protocols

54.

What strategies are used by the Financial Services industry to reduce fraudulent activities?

a)

Educating customers about fraud prevention.

b)

Creating an alert system.

c)

Enforcing rules and regulations.

d)

Identifying suspicious transactions immediately

55.

What best describes the role of secure authentication protocols in the Financial Services industry?

a)

Provide digital signing and verification process.

b)

Reduce the occurrence of fraudulent activities.

c)

Ensure compliance with data privacy regulations.

d)

Monitoring online financial transactions for fraud detection