An association of two or more persons for the purpose of engaging into a business for profit is called ____________________?
(A) Entrepreneurship
(B) Partnership
(C) Proprietorship
(D) Corporation
Which is true about corporation ?
(A) It is worse type of business organization.
(B) The minimum number of incorporators to start a corporation is three.
(C) Its life is dependent on the lives of the incorporators.
(D) The stock holders of the corporation are only liable to the extent of their investments.
Which is true about partnership ?
(A) It has a perpetual life
(B) It will be dissolved if one of the partners ceases to be connected with the partnership
(C) It can be handed down from one generation of partners to another
(D) Its capitalization must be equal for each partner
In case of bankruptcy of a partnership________________?
(A) The partners are not liable for the liabilities of the partnership
(B) The partnership assets (excluding the partners personal assets) only will be used to pay the liabilities
(C) The partners personal assets are attached to the debt of the partnership
(D) The partners nay sell stock to generate additional capital
Double taxation is a disadvantage of which business organization ?
(A) Sole proprietorship
(B) Partnership
(C) Corporation
(D) Enterprise
What is an accounting term that represents an inventory account adjustment ?
(A) Cost of goods sold
(B) Cost accounting
(C) Standard cost
(D) Overhead cost
What is another term for “current assets” ?
(A) Fixed assets
(B) Non-liquid assets
(C) Liquid assets
(D) Ccash
What refers to the interest rate at which the present work of the cash flow on a project is zero of the interest earned by an investment ?
(A) Economic return
(B) Yield
(C) Rate of return
(D) Return of investment
Lands, buildings, plants and machineries are example of what type of asset ?
(A) Current asset
(B) Trade investment asset
(C) Fixed asset
(D) Intangible asset
Which of the following is an example of intangible asset ?
(A) Cash
(B) Investment in subsidiary companies
(C) Furnitures
(D) Patents