Exam 1: Business Basics

A limited _______________ is much like a general partnership except for one important fundamental difference; the law protects the limited partner from being responsible for all of the partnership's losses.

What is an asset?

___________ represents the ability of the business to pay its bills and service its debt.

Describe a transaction and its importance to the accounting department.

What is a dividend?

What refers to the amount earned resulting from the delivery or manufacture of a product or from the rendering of a service?

What is a standardized set of activities that accomplishes a specific task, such as processing a customer's order?

Accounting deals with the strategic financial issues associated with increasing the value of the business while observing applicable laws and social responsibilities.

Define the three common business forms.

What is the division of a market into similar groups of customers?

For profit corporations primarily focus on making money and all profits and losses are shared by the business owners.

List and describe the seven departments commonly found in most organizations.

Which form of business recommends a legal agreement between two or more business partners that outlines core business issues?

What occurs when businesses sell products or services for more than they cost to produce?

Which of the following is not accomplished by human resources management?

____________ segmentation is based on variables such as usage rate, usage patterns, price sensitivity, and brand loyalty.

What involves preparing financial reports that provide information about the business's performance to external parties such as investors, creditors, and tax authorities?

Which of the following represents geographic segmentation?

Partnership agreements typically include all of the following, except:

Which of the following is not a reason to increase market share?