ACCOUNTING 200 EXAM 1 UTK EXAM
2025 QUESTIONS WITH COMPLETE
SOLUTIONS 1 / 2
The three types of a business - ANSWERService Business Merchandising Business Manufacturing Business Business - ANSWERAn organization that sells goods or services to customers The four business forms - ANSWERProprietorship Partnership Corporation Limited Liability Company Proprietorship - ANSWEROwned by one individual Partnership - ANSWEROwned by more than one individual or entity (partners) Corporation - ANSWEROwned by more than one individual or entity (stockholders) Limited Liability Company - ANSWERowned by more than one individual or entity (members) Equation for Net Income - ANSWERRevenues - Expenses Revenue - ANSWERamount the business earned this period Expenses - ANSWERcosts the business incurred this period in earning revenue Low-cost emphasis - ANSWERhigh volume to make a profit acceptable quality at low cost Premium-price emphasis - ANSWERdon't need high volume to make profit unique qualities at a premium price Stakeholder - ANSWEREntities with an interest in a business Capital market stakeholder - ANSWERLenders/creditors Owners/stockholders Product/Service Market stakeholder - ANSWERSuppliers and customers Government stakeholders - ANSWERCollect taxes from the business and regulate activities (IRS, State Tax Boards, OSHA, ADA) Income Statement - ANSWERRevenues - Expenses = Net Income
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