BCOR 1015 EOC TEST PAPER 2025 QUESTIONS WITH
ANSWERS RATED A+
✔✔Small business Economic Role - ✔✔provides jobs, introduces new products, meets
the needs of larger organizations, injects considerable amounts of $$$ into the
economy, takes risks larger companies avoid, provides specialized goods, services
✔✔Small business Characteristics - ✔✔have a narrow focus, have to get by with limited
resources, have more freedom to innovate, find it easier to make decisions quickly and
react to marketplace changes
✔✔Primary forms of business ownership - ✔✔sole proprietorship, partnerships, C
corporations
✔✔Hybrid Forms of business ownership - ✔✔S Corporations, Limited Liability Company
(LLC), Benefit Corporation
✔✔Sole proprietorship - ✔✔owned/operated by 1 individual
✔✔Partnership - ✔✔an association of 2 or more persons who carry on as co-owners of
a business
✔✔C Corporation - ✔✔a legal entity whose assets and liabilities are separate from its
owners
✔✔S Corporation - ✔✔combines the limited liability of a C Corporation and has tax
treatment similar to a partnership (1X taxation). Has limitations that restrict growth
✔✔Limited Liability Company (LLC) - ✔✔limited liability like a corporation and single
taxation similar to a partnership
✔✔Benefit Corporation - ✔✔posses most attributes of a C Corp. Profit seeking
organization that also wants to pursue social and environmental goals
✔✔Entrepreneur - ✔✔someone who risks wealth, time and effort to develop a for profit
innovative product or a way of doing something
✔✔Entrepreneurship - ✔✔process of creating/managing a business to achieve desired
objectives
✔✔Entrepreneurial Spirit - ✔✔positive, forward thinking desire to create profitable,
sustainable business enterprises
, ✔✔Accounting - ✔✔measuring, interpreting and communicating financial information to
support internal and external decision making
✔✔Financial Accounting - ✔✔reporting financial info to users outside the organization
EX: financial statements (income statement, balance sheet)
✔✔GAAP - ✔✔guidelines governing the form and content of financial reports and are
formulated by the Financial Accounting Standards Board
✔✔Why GAAP - ✔✔Relevant, Reliable, Consistent, Comparable
✔✔The Matching Principle - ✔✔expenses incurred in producing revenue must be
deducted from the revenues they generate during an accounting period
✔✔GAAP & IFRS Convergence - ✔✔we are moving toward a global accounting
standard, many US firms must be financially bilingual using both GAAP & IFRS
✔✔The Accounting Equation - ✔✔shows the relationship between assets, liabilities and
owner's equity
ASSETS = LIABILITIES + OWNER'S EQUITY
✔✔Assets - ✔✔things of value that a firm OWNS (cash, inventory, land, equipment,
buildings)
*listed in descending order of liquidity
✔✔Liabilities - ✔✔a firm's debts and obligations; what a firm OWES
*listed in order of how soon they must be paid
✔✔Owner's Equity - ✔✔portion of assets that belongs to the owners after obligations to
all creditors have been met; NET WORTH
*ALL the value that has been accumulated by the company SINCE IT WAS FORMED
✔✔Double-Entry Bookkeeping - ✔✔system of recording and classifying business
transactions in order to maintain the balance of the accounting equation
✔✔The Balance Sheet - ✔✔The end results of the accounting process (recording,
classifying, and posting info)
*a snapshot of an organization's financial position at a specific point in time.
*accumulation of ALL the company's transactions since it began
✔✔The Income Statement - ✔✔a financial record of a company's revenues, expenses,
and profits over a given period of time
ANSWERS RATED A+
✔✔Small business Economic Role - ✔✔provides jobs, introduces new products, meets
the needs of larger organizations, injects considerable amounts of $$$ into the
economy, takes risks larger companies avoid, provides specialized goods, services
✔✔Small business Characteristics - ✔✔have a narrow focus, have to get by with limited
resources, have more freedom to innovate, find it easier to make decisions quickly and
react to marketplace changes
✔✔Primary forms of business ownership - ✔✔sole proprietorship, partnerships, C
corporations
✔✔Hybrid Forms of business ownership - ✔✔S Corporations, Limited Liability Company
(LLC), Benefit Corporation
✔✔Sole proprietorship - ✔✔owned/operated by 1 individual
✔✔Partnership - ✔✔an association of 2 or more persons who carry on as co-owners of
a business
✔✔C Corporation - ✔✔a legal entity whose assets and liabilities are separate from its
owners
✔✔S Corporation - ✔✔combines the limited liability of a C Corporation and has tax
treatment similar to a partnership (1X taxation). Has limitations that restrict growth
✔✔Limited Liability Company (LLC) - ✔✔limited liability like a corporation and single
taxation similar to a partnership
✔✔Benefit Corporation - ✔✔posses most attributes of a C Corp. Profit seeking
organization that also wants to pursue social and environmental goals
✔✔Entrepreneur - ✔✔someone who risks wealth, time and effort to develop a for profit
innovative product or a way of doing something
✔✔Entrepreneurship - ✔✔process of creating/managing a business to achieve desired
objectives
✔✔Entrepreneurial Spirit - ✔✔positive, forward thinking desire to create profitable,
sustainable business enterprises
, ✔✔Accounting - ✔✔measuring, interpreting and communicating financial information to
support internal and external decision making
✔✔Financial Accounting - ✔✔reporting financial info to users outside the organization
EX: financial statements (income statement, balance sheet)
✔✔GAAP - ✔✔guidelines governing the form and content of financial reports and are
formulated by the Financial Accounting Standards Board
✔✔Why GAAP - ✔✔Relevant, Reliable, Consistent, Comparable
✔✔The Matching Principle - ✔✔expenses incurred in producing revenue must be
deducted from the revenues they generate during an accounting period
✔✔GAAP & IFRS Convergence - ✔✔we are moving toward a global accounting
standard, many US firms must be financially bilingual using both GAAP & IFRS
✔✔The Accounting Equation - ✔✔shows the relationship between assets, liabilities and
owner's equity
ASSETS = LIABILITIES + OWNER'S EQUITY
✔✔Assets - ✔✔things of value that a firm OWNS (cash, inventory, land, equipment,
buildings)
*listed in descending order of liquidity
✔✔Liabilities - ✔✔a firm's debts and obligations; what a firm OWES
*listed in order of how soon they must be paid
✔✔Owner's Equity - ✔✔portion of assets that belongs to the owners after obligations to
all creditors have been met; NET WORTH
*ALL the value that has been accumulated by the company SINCE IT WAS FORMED
✔✔Double-Entry Bookkeeping - ✔✔system of recording and classifying business
transactions in order to maintain the balance of the accounting equation
✔✔The Balance Sheet - ✔✔The end results of the accounting process (recording,
classifying, and posting info)
*a snapshot of an organization's financial position at a specific point in time.
*accumulation of ALL the company's transactions since it began
✔✔The Income Statement - ✔✔a financial record of a company's revenues, expenses,
and profits over a given period of time
