Business Essentials Final Exam Study
Guide Questions with Correct
Answers
false - ANSWERSall income that a business recieves over a period of tume is called
profit
true - ANSWERSto prepare a budget, a business to be able to guide and fight and
protect the amount of each source of income and each type of expense
true - ANSWERSsales and profits for a specific period are reported in the company's
income statement
true - ANSWERSassets - liabilities = owner's equity
false - ANSWERSA majority of employees in most businesses receive a weekly or
monthly salary
true - ANSWERSpayroll taxes consist of income taxes, Social Security, Medicare, and
unemployment Texas
false - ANSWERSmost businesses try to keep much more inventory on hand then they
will need in the immediate future
false - ANSWERSwith careful planning, it is possible to avoid all risk
false - ANSWERSwhen you invest money in the stock market you're taking a pure risk
false - ANSWERSthe person or company buying an insurance policy is called the
insured
true - ANSWERSwith group insurance, a large number of employees and their family
members are covered under one policy
true - ANSWERSvehicle insurance pays medical costs for those injured if people driving
the company's vehicles cause an accident
true - ANSWERSbusinesses cannot insure many of the risks they face
false - ANSWERSit is usually a huge risk for a company to employ locals it expands into
the international marketplace
Guide Questions with Correct
Answers
false - ANSWERSall income that a business recieves over a period of tume is called
profit
true - ANSWERSto prepare a budget, a business to be able to guide and fight and
protect the amount of each source of income and each type of expense
true - ANSWERSsales and profits for a specific period are reported in the company's
income statement
true - ANSWERSassets - liabilities = owner's equity
false - ANSWERSA majority of employees in most businesses receive a weekly or
monthly salary
true - ANSWERSpayroll taxes consist of income taxes, Social Security, Medicare, and
unemployment Texas
false - ANSWERSmost businesses try to keep much more inventory on hand then they
will need in the immediate future
false - ANSWERSwith careful planning, it is possible to avoid all risk
false - ANSWERSwhen you invest money in the stock market you're taking a pure risk
false - ANSWERSthe person or company buying an insurance policy is called the
insured
true - ANSWERSwith group insurance, a large number of employees and their family
members are covered under one policy
true - ANSWERSvehicle insurance pays medical costs for those injured if people driving
the company's vehicles cause an accident
true - ANSWERSbusinesses cannot insure many of the risks they face
false - ANSWERSit is usually a huge risk for a company to employ locals it expands into
the international marketplace
