Reference no: EM132968592
Problem 1: A business has loss if it is not generating cash.a. Trueb. FalseBusinesses do not serve public purposes
a. True
b. False
Problem 2: Partnerships are easier to form compared to sole-proprietorships.
a. True
b. False
Problem 3: Stockholders are the owners of a corporation
a. True
b. False
Problem 4: Businesses exist to satisfy human needs and wants
a. True
b. False
Problem 5: Businesses make lives of people convenient.
a. True
b. False
Problem 6: Corporations can not sue and be sued
a. True
b. False
Problem 7: Stockholders have unlimited liability.
a. True
b. False
Problem 8: Financial information is need to determine profit.
a. True
b. False
Problem 9: The objective of businesses is to earn profit
a. True
b. False
Problem 10: Financial information is not needed in business planning.
a. True
b. False
Problem 11: Cooperatives are similar to corporations
a. True
b. False
Problem 12: Corporations have more capacity to raise capital than sole-proprietorships.
a. True
b. False
Problem 13: Service concern business derive revenues form the sale of goods.
a. True
b. False
Problem 14: Financial information is only needed in controlling financial transactions.
a. True
b. False
Problem 15: Partners have limited liability
a. True
b. False
Problem 16: Trading-concern businesses convert raw materials to finished products.
a. True
b. False
Problem 17: All forms of business ownerships are governed by laws.
a. True
b. False
Problem 18: A business has profit if its revenues are greater than its expenses.
a. True
b. False
Problem 19: The owner of a partnership is called proprietor
a. True
b. False
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