, Plug-In B1
Business Basics
True / False Questions
1. Human resources management includes the policies, plans, and procedures for the
effective management of employees (human resources).
True False
2. Accounting deals with the strategic financial issues associated with increasing the
value of the business while observing applicable laws and social responsibilities.
True False
3. Break-even analysis is the point at which revenues equal costs.
True False
4. For-profit corporations primarily focus on making money and all profits and losses are
shared by the business owners.
True False
5. A loss occurs when businesses sell products or services for less than they cost to
produce.
True False
Multiple Choice Questions
6. What occurs when businesses sell products or services for more than they cost to
produce?
A. Expens
e
B. Profi
t
C. Los
s
D. Revenu
e
1-1
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,7. Which of the following is not a type of business?
A. Sole
partnership
B. Partnershi
p
C. Limited
partnership
D. Corporati
on
8. Which form of business recommends a legal agreement between two or more
business partners that outlines core business issues?
A. Sole
proprietorship
B. Partnershi
p
C. Corporati
on
D. LLC
9. What is the fundamental difference found in a limited partnership?
A. Only one partner is responsible for all of the
partnership's losses.
B. Both partners are responsible for all of the
partnership's losses.
C. Both partners are protected from being responsible for all of the
partnership's losses.
D. None of
these.
10. Partnership agreements typically include all of the following, except:
A. Expectations for sharing profits and
losses.
B. Partner's salary
requirements.
C. Methods for conflict
resolution.
D. Shareholder's expectations for a successful
business.
1-2
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, 11. What is a hybrid entity that has the legal protections of a corporation and the ability
to be taxed (one time) as a partnership?
A. Limited
partnership
B. Limited liability
corporation
C. Limited
proprietorship
D. Limited
shareholder
12. What analyzes the transactional information of the business so the owners and
investors can make sound economic decisions?
A. Accounti
ng
B. Bookkeepi
ng
C. Financial
Accounting
D. Managerial
Accounting
13. What refers to the amount earned resulting from the delivery or manufacture of a
product or from the rendering of a service?
A. Expens
e
B. Profi
t
C. Los
s
D. Revenu
e
14. What involves preparing financial reports that provide information about the
business's performance to external parties such as investors, creditors, and tax
authorities?
A. Accounti
ng
B. Bookkeepi
ng
C. Financial
accounting
D. Managerial
accounting
1-3
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Business Basics
True / False Questions
1. Human resources management includes the policies, plans, and procedures for the
effective management of employees (human resources).
True False
2. Accounting deals with the strategic financial issues associated with increasing the
value of the business while observing applicable laws and social responsibilities.
True False
3. Break-even analysis is the point at which revenues equal costs.
True False
4. For-profit corporations primarily focus on making money and all profits and losses are
shared by the business owners.
True False
5. A loss occurs when businesses sell products or services for less than they cost to
produce.
True False
Multiple Choice Questions
6. What occurs when businesses sell products or services for more than they cost to
produce?
A. Expens
e
B. Profi
t
C. Los
s
D. Revenu
e
1-1
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,7. Which of the following is not a type of business?
A. Sole
partnership
B. Partnershi
p
C. Limited
partnership
D. Corporati
on
8. Which form of business recommends a legal agreement between two or more
business partners that outlines core business issues?
A. Sole
proprietorship
B. Partnershi
p
C. Corporati
on
D. LLC
9. What is the fundamental difference found in a limited partnership?
A. Only one partner is responsible for all of the
partnership's losses.
B. Both partners are responsible for all of the
partnership's losses.
C. Both partners are protected from being responsible for all of the
partnership's losses.
D. None of
these.
10. Partnership agreements typically include all of the following, except:
A. Expectations for sharing profits and
losses.
B. Partner's salary
requirements.
C. Methods for conflict
resolution.
D. Shareholder's expectations for a successful
business.
1-2
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, 11. What is a hybrid entity that has the legal protections of a corporation and the ability
to be taxed (one time) as a partnership?
A. Limited
partnership
B. Limited liability
corporation
C. Limited
proprietorship
D. Limited
shareholder
12. What analyzes the transactional information of the business so the owners and
investors can make sound economic decisions?
A. Accounti
ng
B. Bookkeepi
ng
C. Financial
Accounting
D. Managerial
Accounting
13. What refers to the amount earned resulting from the delivery or manufacture of a
product or from the rendering of a service?
A. Expens
e
B. Profi
t
C. Los
s
D. Revenu
e
14. What involves preparing financial reports that provide information about the
business's performance to external parties such as investors, creditors, and tax
authorities?
A. Accounti
ng
B. Bookkeepi
ng
C. Financial
accounting
D. Managerial
accounting
1-3
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
