Diagnostic Test: Fundamental of Accounting Business & Management 1
Diagnostic Test: Fundamental of Accounting Business & Management 1
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B. The owner pays the taxes as a business entity 24. What is the type of business according to activi-
C. The owner pays its personal tax for the business ties that produce nonphysical outputs in the form of
Itself. a service?
D. None of the above A. Manufacturing business
B. Merchandising business
18. The following are advantages of partnership; ex- C. Service business
cept one. D. None of the above
A. A partnership is generally easier to form,
manage, and run. 25. What is the type of business according to
B. Partners can share the responsibility of the activities that purchase goods that are ready for
sale and then sell them to customers?
running of the business. This will allow them to
A. Manufacturing business
make the most of their abilities.
B. Merchandising business
C. The more partners, the more money they can
C. Service business
put into the business which will allow better
D. None of the above
flexibility and more potential for growth.
D. As an owner, one of the partners can even 26. In this type of business, the business provides dif-
pass ferent types of labor services to the general public?
a business down to his or he heirs. A. Manufacturing business
B. Merchandising business
19. Why is capital considered as an advantage of C. Service business
partnerships? D. None of the above
A. They can raise substantial amounts by selling
shares or issuing bonds. 27. The following are advantages of a service busi-
B. The more partners there are, the more money ness; except one ________________.
they can put into the business, which will allow A. You are an expert
D. Increased Sales
better flexibility and more potential for growth.
C. No inventory
C. They can acquire more capital by attracting D. None of the above
investors.
D. All of the above 28. The following are disadvantages of a service
business except one.
20. Which of the following is considered as a legal A. Demand cutback C. Intangibles
entity? B. Expense D. Difficult valuation
A. Partnership C. Cooperative
29. The following are advantages of a merchandis-
B. Sole proprietorship D. All of the above ing business, except one.
A. Bringing them in C. Increased sales
21. How do corporations raise additional capital B. None of these are thesis D. Job satisfaction
A. Additional capital can be raised easily through
stock Markets. 30. The following are advantages of a service busi-
ness, except one.
B. Issuing bonds
A. Demands on staff
C. Applying for loan B. Expectation- once is not enough
D. All of the above C. Expense
D. Reliance on raw materials
22. What is the type of business according to activi-
ties that produces physical goods?
A. General ledger C. General journal
B. Expense Account D. Balance sheet
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