ACCT 2810 MILLER EXAM 1
QUESTIONS AND ANSWERS (VERIFIED
AND UPDATED)
Proprietorship - ANS is owned by one individual. More than 70% of the businesses in the
United States are organized as proprietorships. This is due to the ease and low cost of organizing
a proprietorship.
partnership - ANS is similar to a proprietorship, but it is owned by two or more individuals.
About 10% of the businesses in the United States are organized as partnerships.
corporation - ANS operates as a separate legal entity under state or federal statutes. The
ownership of a corporation is divided into shares of stock, which each stockholder purchases to
gain ownership interest in the corporation.
Limited liability companies (LLC) - ANS combine the ownership attributes of a partnership
and a corporation. These companies mainly operate like partnership firms, but the owners have
limited liability, which is an advantage of the corporate structure.
Service business - ANS Provides services rather than products to customers. (Delta Airlines,
Hairmasters, Tailgate Guys)
@2026/2027 ALLRIGHTS RESERVED.
, Merchandising business - ANS Provides services rather than products to customers. (Delta
Airlines, Hairmasters, Tailgate Guys)
Manufacturing business - ANS Changes basic inputs into products that are sold to customers.
(Baxter International, Hyundai)
business - ANS is an organization in which basic resources (inputs), such as materials and
labor, are assembled and processed to provide goods or services (outputs) to customers. -
Businesses come in all sizes, from a local coffee house to Starbucks, which sells over $16 billion
of coffee and related products each year.
Profit - ANS is the difference between the amounts received from customers for goods or
services and the amounts paid for the inputs used to provide the goods or services.
Revenues minus expenses - ANS Net Income (Loss)
Low-cost strategy - ANS A company designs and produces products or services at a lower cost
than its competitors.
Premium-price strategy - ANS A company tries to design and produce products or services
that serve unique market needs, allowing it to charge premium prices
low cost - ANS south west, Union pacific, Hyudai, Sam Club, Ameritrade, Super 8
Premium cost - ANS virgin Atlantic, fedex, BMW, Tabot, Ritz carlton
Business stakeholder - ANS A person or entity with an interest in the economic performance
and well-being of a company.
@2026/2027 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS (VERIFIED
AND UPDATED)
Proprietorship - ANS is owned by one individual. More than 70% of the businesses in the
United States are organized as proprietorships. This is due to the ease and low cost of organizing
a proprietorship.
partnership - ANS is similar to a proprietorship, but it is owned by two or more individuals.
About 10% of the businesses in the United States are organized as partnerships.
corporation - ANS operates as a separate legal entity under state or federal statutes. The
ownership of a corporation is divided into shares of stock, which each stockholder purchases to
gain ownership interest in the corporation.
Limited liability companies (LLC) - ANS combine the ownership attributes of a partnership
and a corporation. These companies mainly operate like partnership firms, but the owners have
limited liability, which is an advantage of the corporate structure.
Service business - ANS Provides services rather than products to customers. (Delta Airlines,
Hairmasters, Tailgate Guys)
@2026/2027 ALLRIGHTS RESERVED.
, Merchandising business - ANS Provides services rather than products to customers. (Delta
Airlines, Hairmasters, Tailgate Guys)
Manufacturing business - ANS Changes basic inputs into products that are sold to customers.
(Baxter International, Hyundai)
business - ANS is an organization in which basic resources (inputs), such as materials and
labor, are assembled and processed to provide goods or services (outputs) to customers. -
Businesses come in all sizes, from a local coffee house to Starbucks, which sells over $16 billion
of coffee and related products each year.
Profit - ANS is the difference between the amounts received from customers for goods or
services and the amounts paid for the inputs used to provide the goods or services.
Revenues minus expenses - ANS Net Income (Loss)
Low-cost strategy - ANS A company designs and produces products or services at a lower cost
than its competitors.
Premium-price strategy - ANS A company tries to design and produce products or services
that serve unique market needs, allowing it to charge premium prices
low cost - ANS south west, Union pacific, Hyudai, Sam Club, Ameritrade, Super 8
Premium cost - ANS virgin Atlantic, fedex, BMW, Tabot, Ritz carlton
Business stakeholder - ANS A person or entity with an interest in the economic performance
and well-being of a company.
@2026/2027 ALLRIGHTS RESERVED.
