Task Team of FUNdaMENTAL aCCOUNtIng School of Business. Sun Yat-sen University Lesson 2 Economic Transactions and Accounting equation Self-Test Multiple choices 1. The ownership structure of a business includes the following forms A Individual, group, corporate B. Sole proprietorship, partnership, or corporation C. Service. manufacturing and financial D Debtors, creditors, and owners 2. Which of the following is NOT true concerning a sole proprietorship? A. A sole proprietorship is a company owned by two or more individuals B. The owner is personally responsible for all of the decision made for the C business C. Income from a sole proprietorship is included on the owner's personal tax return D. The company's bills are the owner's bills 3. The two types of merchandising businesses include A. Wholesale and retail B. Service and financial C Manufacturing and retai D. Service and wholesale 4. A corporation A Is a special legal form for a business in which the business is a legal entity separate from B. Is a company with a single owner. C. May cause unlimited liability for its shareholders D. Provides goods or services for the sole purpose of helping people 5. The inputs of a firm include B Equipment. C. Inventory and supplies D. All of the above 6. Capital is A. Revenues earned by a busines B Expenses owed by business C. Resources used to start and run a business. C. Assets owned by a business 7. A service company A Buys goods and services for resale. B Manufactures goods C. Does something for its customers D. Is a wholesale business 8. A manufacturing busine A Will lend money to customers B. Buys goods for resale C. Provides services to its customers D. Makes the products it sellTask Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University Lesson 2 Economic Transactions and Accounting Equation Self-Test Multiple Choices 1. The ownership structure of a business includes the following forms: A. Individual, group, corporate. B. Sole proprietorship, partnership, or corporation. C. Service, manufacturing, and financial. D. Debtors, creditors, and owners. 2. Which of the following is NOT true concerning a sole proprietorship? A. A sole proprietorship is a company owned by two or more individuals. B. The owner is personally responsible for all of the decision made for the C. business. C. Income from a sole proprietorship is included on the owner’s personal tax return. D. The company’s bills are the owner’s bills. 3. The two types of merchandising businesses include: A. Wholesale and retail. B. Service and financial. C. Manufacturing and retail. D. Service and wholesale. 4. A corporation A. Is a special legal form for a business in which the business is a legal entity separate from the owners. B. Is a company with a single owner. C. May cause unlimited liability for its shareholders. D. Provides goods or services for the sole purpose of helping people. 5. The inputs of a firm include: A. Capital. B. Equipment. C. Inventory and supplies. D. All of the above. 6. Capital is: A. Revenues earned by a business. B. Expenses owed by business. C. Resources used to start and run a business. C. Assets owned by a business. 7. A service company: A. Buys goods and services for resale. B. Manufactures goods. C. Does something for its customers. D. Is a wholesale business. 8. A manufacturing business: A. Will lend money to customers. B. Buys goods for resale. C. Provides services to its customers. D. Makes the products it sells