ACCOUNTING 200 EXAM 1 UTK
QUESTIONS AND CORRECT ANSWERS.
VERIFIED 2025/2026.
The three types of a business - ANS Service Business
Merchandising Business
Manufacturing Business
Business - ANS An organization that sells goods or services to customers
The four business forms - ANS Proprietorship
Partnership
Corporation
Limited Liability Company
Proprietorship - ANS Owned by one individual
Partnership - ANS Owned by more than one individual or entity (partners)
Corporation - ANS Owned by more than one individual or entity (stockholders)
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Limited Liability Company - ANS owned by more than one individual or entity (members)
Equation for Net Income - ANS Revenues - Expenses
Revenue - ANS amount the business earned this period
Expenses - ANS costs the business incurred this period in earning revenue
Low-cost emphasis - ANS high volume to make a profit
acceptable quality at low cost
Premium-price emphasis - ANS don't need high volume to make profit
unique qualities at a premium price
Stakeholder - ANS Entities with an interest in a business
Capital market stakeholder - ANS Lenders/creditors
Owners/stockholders
Product/Service Market stakeholder - ANS Suppliers and customers
Government stakeholders - ANS Collect taxes from the business and regulate activities (IRS,
State Tax Boards, OSHA, ADA)
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND CORRECT ANSWERS.
VERIFIED 2025/2026.
The three types of a business - ANS Service Business
Merchandising Business
Manufacturing Business
Business - ANS An organization that sells goods or services to customers
The four business forms - ANS Proprietorship
Partnership
Corporation
Limited Liability Company
Proprietorship - ANS Owned by one individual
Partnership - ANS Owned by more than one individual or entity (partners)
Corporation - ANS Owned by more than one individual or entity (stockholders)
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Limited Liability Company - ANS owned by more than one individual or entity (members)
Equation for Net Income - ANS Revenues - Expenses
Revenue - ANS amount the business earned this period
Expenses - ANS costs the business incurred this period in earning revenue
Low-cost emphasis - ANS high volume to make a profit
acceptable quality at low cost
Premium-price emphasis - ANS don't need high volume to make profit
unique qualities at a premium price
Stakeholder - ANS Entities with an interest in a business
Capital market stakeholder - ANS Lenders/creditors
Owners/stockholders
Product/Service Market stakeholder - ANS Suppliers and customers
Government stakeholders - ANS Collect taxes from the business and regulate activities (IRS,
State Tax Boards, OSHA, ADA)
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
