FOUNDATIONS OF ACCOUNTING PEREGRINE
GLOBAL 2026 FINAL REVIEW PACK COMPLETE
QUESTION SET AND CORE CONCEPT
SUMMARY
◉ partnership. Answer: 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. Answer: 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). Answer: 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. Answer: Provides services rather than products
to customers. (Delta Airlines, Hairmasters, Tailgate Guys)
, ◉ Merchandising business. Answer: Provides services rather than
products to customers. (Delta Airlines, Hairmasters, Tailgate Guys)
◉ Manufacturing business. Answer: Changes basic inputs into
products that are sold to customers. (Baxter International, Hyundai)
◉ business. Answer: 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. Answer: 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. Answer: Net Income (Loss)
◉ Low-cost strategy. Answer: A company designs and produces
products or services at a lower cost than its competitors.
◉ Premium-price strategy. Answer: A company tries to design and
produce products or services that serve unique market needs,
allowing it to charge premium prices
GLOBAL 2026 FINAL REVIEW PACK COMPLETE
QUESTION SET AND CORE CONCEPT
SUMMARY
◉ partnership. Answer: 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. Answer: 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). Answer: 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. Answer: Provides services rather than products
to customers. (Delta Airlines, Hairmasters, Tailgate Guys)
, ◉ Merchandising business. Answer: Provides services rather than
products to customers. (Delta Airlines, Hairmasters, Tailgate Guys)
◉ Manufacturing business. Answer: Changes basic inputs into
products that are sold to customers. (Baxter International, Hyundai)
◉ business. Answer: 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. Answer: 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. Answer: Net Income (Loss)
◉ Low-cost strategy. Answer: A company designs and produces
products or services at a lower cost than its competitors.
◉ Premium-price strategy. Answer: A company tries to design and
produce products or services that serve unique market needs,
allowing it to charge premium prices
