Question 1

A company has which of these sets of characteristics?

Accepted Answer

A)  Difficulty raising funds, owners have full control. 
B)  Owners have shared control and unlimited liability. 
C)  Separate legal entity and owners have limited liability. 
D)  Simple to set up and mutual agency. 
A)  Difficulty raising funds, owners have full control. 
B)  Owners have shared control and unlimited liability. 
C)  Separate legal entity and owners have limited liability. 
D)  Simple to set up and mutual agency. C

Question 2

The form of business structure most likely to be used where assets are held for the benefit of other parties is a:

Accepted Answer

A)  company. 
B)  trust. 
C)  sole trader. 
D)  partnership. 
A)  company. 
B)  trust. 
C)  sole trader. 
D)  partnership. B

Question 3

The AASB's modified reporting requirements for Tier 1 and Tier 2 disclosing entities is known as ________________ ________________.

Accepted Answer

differential reporting

Question 4

The profit for a partnership must be distributed:

Accepted Answer

A)  according to the partnership agreement. 
B)  equally among the partners. 
C)  according to the workload contribution of each partner. 
D)  according to the capital contributions of each partner. 
A)  according to the partnership agreement. 
B)  equally among the partners. 
C)  according to the workload contribution of each partner. 
D)  according to the capital contributions of each partner.

Question 5

An advantage of the company form of business is that:

Accepted Answer

A)  it has a limited life. 
B)  its owners have a say in the day-to-day operations of the company. 
C)  it has the ability to raise large amounts of capital. 
D)  it is cheap and easy to establish. 
A)  it has a limited life. 
B)  its owners have a say in the day-to-day operations of the company. 
C)  it has the ability to raise large amounts of capital. 
D)  it is cheap and easy to establish.

Question 6

When setting up a partnership each partner can contribute:

Accepted Answer

A)  talent. 
B)  knowledge. 
C)  capital. 
D)  all of the above. 
A)  talent. 
B)  knowledge. 
C)  capital. 
D)  all of the above.

Question 7

Individuals who pay tax on the income distributed to them may have received that income from a:

Accepted Answer

A)  sole trader. 
B)  partnership. 
C)  trust. 
D)  all of the above. 
A)  sole trader. 
B)  partnership. 
C)  trust. 
D)  all of the above.

Question 8

A company is a separate _______________ entity to the owners of the business.

Accepted Answer

The answer of A company is a separate _______________ entity...

Question 9

If the partnership agreement does not contain profit sharing arrangements,then the Partnership Act states that profits and losses must be shared:

Accepted Answer

A)  according to the amount of work performed by each partner. 
B)  in proportion to the capital contribution of each partner. 
C)  based on the capital, skills and workload contributed by each partner. 
D)  equally between all partners. 
A)  according to the amount of work performed by each partner. 
B)  in proportion to the capital contribution of each partner. 
C)  based on the capital, skills and workload contributed by each partner. 
D)  equally between all partners.

Question 10

Which of the following statements is not true for a 'no-liability' company?

Accepted Answer

A)  If the company becomes insolvent shareholders are still required to pay any outstanding amounts owed on their shares. 
B)  In Australia, no-liability companies are solely mining companies. 
C)  The shareholders are not liable for the outstanding debts of the company. 
D)  The company's operations are of a risky nature. 
A)  If the company becomes insolvent shareholders are still required to pay any outstanding amounts owed on their shares. 
B)  In Australia, no-liability companies are solely mining companies. 
C)  The shareholders are not liable for the outstanding debts of the company. 
D)  The company's operations are of a risky nature.

Question 11

__________ __________ is when each partner has the right to enter into,and be bound by,any partnership contract.

Accepted Answer

The answer of __________ __________ is when each partner has...

Question 12

A disadvantage of being a sole trader is:

Accepted Answer

A)  may pay higher taxes on business income. 
B)  having a business that is inexpensive to start up and wind down. 
C)  having very little government regulation. 
D)  having total autonomy over business decisions. 
A)  may pay higher taxes on business income. 
B)  having a business that is inexpensive to start up and wind down. 
C)  having very little government regulation. 
D)  having total autonomy over business decisions.

Question 13

Which of the following is not a characteristic of a unit trust?

Accepted Answer

A)  Income is distributed to the parties according to their respective unit holdings in the trust. 
B)  Holds a collection of assets on behalf of various members rather than only family members. 
C)  Provides the trustee with discretion, according to the trust deed, over who receives distributions from the trust. 
D)  Usually concentrates on a particular investment such as equity, property or cash management. 
A)  Income is distributed to the parties according to their respective unit holdings in the trust. 
B)  Holds a collection of assets on behalf of various members rather than only family members. 
C)  Provides the trustee with discretion, according to the trust deed, over who receives distributions from the trust. 
D)  Usually concentrates on a particular investment such as equity, property or cash management.

Question 14

Manufacturing entities are involved in the conversion of raw materials into _____________ _____________.

Accepted Answer

The answer of Manufacturing entities are involved in the conversion...

Question 15

The owners of a company are known as ______________.

Accepted Answer

The answer of The owners of a company are known...

Question 16

A public company with its share capital limited by guarantee is a popular business structure for which type of entity?

Accepted Answer

A)  Not-for-profit charity. 
B)  Mining company. 
C)  Investment company. 
D)  Any of the above. 
A)  Not-for-profit charity. 
B)  Mining company. 
C)  Investment company. 
D)  Any of the above.

Question 17

In Australia a discretionary trust is also known as a _____________ trust.

Accepted Answer

The answer of In Australia a discretionary trust is also...

Question 18

Which financial statement is concerned with an entity at a point in time?

Accepted Answer

A)  Statement of financial position. 
B)  Statement of cash flows. 
C)  Profit and loss statement. 
D)  Comprehensive income statement. 
A)  Statement of financial position. 
B)  Statement of cash flows. 
C)  Profit and loss statement. 
D)  Comprehensive income statement.

Question 19

Which of the following describes a type of public company?

Accepted Answer

A)  Share capital that is limited by shares. 
B)  Unlimited share capital. 
C)  Share capital that is limited by guarantee. 
D)  All of the above. 
A)  Share capital that is limited by shares. 
B)  Unlimited share capital. 
C)  Share capital that is limited by guarantee. 
D)  All of the above.

Question 20

An advantage of operating as a sole trader is:

Accepted Answer

A)  the owner claims all the profits if the business is sold. 
B)  the business is limited by the skill, time and investment of the owner. 
C)  the business is not a separate legal entity. 
D)  the owner has unlimited liability. 
A)  the owner claims all the profits if the business is sold. 
B)  the business is limited by the skill, time and investment of the owner. 
C)  the business is not a separate legal entity. 
D)  the owner has unlimited liability.

A company has which of these sets of characteristics?

The form of business structure most likely to be used where assets are held for the benefit of other parties is a:

The AASB's modified reporting requirements for Tier 1 and Tier 2 disclosing entities is known as .

The profit for a partnership must be distributed:

An advantage of the company form of business is that:

When setting up a partnership each partner can contribute:

Individuals who pay tax on the income distributed to them may have received that income from a:

A company is a separate _______________ entity to the owners of the business.

If the partnership agreement does not contain profit sharing arrangements,then the Partnership Act states that profits and losses must be shared:

Which of the following statements is not true for a 'no-liability' company?

is when each partner has the right to enter into,and be bound by,any partnership contract.

A disadvantage of being a sole trader is:

Which of the following is not a characteristic of a unit trust?

Manufacturing entities are involved in the conversion of raw materials into _ _.

The owners of a company are known as ______________.

A public company with its share capital limited by guarantee is a popular business structure for which type of entity?

In Australia a discretionary trust is also known as a _____________ trust.

Which financial statement is concerned with an entity at a point in time?

Which of the following describes a type of public company?

An advantage of operating as a sole trader is:

Introduction to Accounting and Business Decision Making

Accounting in Society

Business Transactions

Balance Sheet

Statement of Profit or Loss and Statement of Changes in Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Budgeting

Costvolumeprofit Analysis

Costing and Pricing in an Entity

Capital Investment

Financing the Business

Performance Measurement

Filters

Exam 3: Business Structures

A company has which of these sets of characteristics?

The form of business structure most likely to be used where assets are held for the benefit of other parties is a:

The AASB's modified reporting requirements for Tier 1 and Tier 2 disclosing entities is known as ________________ ________________.

The profit for a partnership must be distributed:

An advantage of the company form of business is that:

When setting up a partnership each partner can contribute:

Individuals who pay tax on the income distributed to them may have received that income from a:

A company is a separate _______________ entity to the owners of the business.

If the partnership agreement does not contain profit sharing arrangements,then the Partnership Act states that profits and losses must be shared:

Which of the following statements is not true for a 'no-liability' company?

__________ __________ is when each partner has the right to enter into,and be bound by,any partnership contract.

A disadvantage of being a sole trader is:

Which of the following is not a characteristic of a unit trust?

Manufacturing entities are involved in the conversion of raw materials into _____________ _____________.

The owners of a company are known as ______________.

A public company with its share capital limited by guarantee is a popular business structure for which type of entity?

In Australia a discretionary trust is also known as a _____________ trust.

Which financial statement is concerned with an entity at a point in time?

Which of the following describes a type of public company?

An advantage of operating as a sole trader is:

Introduction to Accounting and Business Decision Making

Accounting in Society

Business Transactions

Balance Sheet

Statement of Profit or Loss and Statement of Changes in Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Budgeting

Costvolumeprofit Analysis

Costing and Pricing in an Entity

Capital Investment

Financing the Business

Performance Measurement

Filters

The AASB's modified reporting requirements for Tier 1 and Tier 2 disclosing entities is known as .

is when each partner has the right to enter into,and be bound by,any partnership contract.

Manufacturing entities are involved in the conversion of raw materials into _ _.