FSU ACG 2021 Exam 1 questions with 100%
complete solutions graded A+ updated
1. Sole Proprietorship A business owned by a single individual
2. -Easy to start (no paperwork) Advantages of sole proprietorship and
-Total or more control (owner partner- ship
and/or partner)
-Single taxation
-Added skills from Partners
(partner- ship)
3. -Personal liability (risk of losing Disadvantages of sole proprietorship and
per- sonal assets like car, part- nership
house, etc.)
-Harder to transfer ownership
-No continuous life (company
dies w/ owners)
-Hard to raise money
4. Partnership A business owned by two or more individuals
5. Shareholders A corporation is a business owned by .
6. Corporation An incorporated business entity that has filed
ar- ticles of incorporation (paperwork) in a
state of domicile
7. -Easy to transfer ownership -Continuous life
(buy/sell shares)
-Easy to raise money (issue 8. -Tough to start
stock) -Double Taxation
-No personal liability (most you (corporation gets
can lose is the value of the
stock)
,FSU ACG 2021 Exam 1 questions with 100%
complete solutions graded A+ updated
Advantages of corporations
Disadvantages of corporations
,FSU ACG 2021 Exam 1 questions with 100%
complete solutions graded A+ updated
taxed on profit to the
government and then owners
get taxed on profit)
-No control (shareholders make
deci- sions)
-More government regulations (SEC)
-Principal-Agent problem (CEO
make decisions, no input from
shareholders)
9. Stock A piece of paper that grants you
ownership of a company for a given
price
10. Dividend A payment of cash to a shareholder
11. Accounting All three (sole proprietorship, partnership,
and corporation) are separate
entities.
12. Legal Only a corporation is a separate entity.
13. Financial accounting The information system that shows the
economic events of a corporation. This
system identifies, records, and
communicates all info to interested parties
such as stockholders.
14. Revenues The money that comes in
15. Expenses The money that goes out
16. Internal users- Managerial accounting People within the company (marketing
depart-
,FSU ACG 2021 Exam 1 questions with 100%
complete solutions graded A+ updated
ment management, finance dept., human re-
source dept., etc.)
17. External users- Financial accounting People outside the company (shareholders,
customers, creditors, taxing authorities, labor
complete solutions graded A+ updated
1. Sole Proprietorship A business owned by a single individual
2. -Easy to start (no paperwork) Advantages of sole proprietorship and
-Total or more control (owner partner- ship
and/or partner)
-Single taxation
-Added skills from Partners
(partner- ship)
3. -Personal liability (risk of losing Disadvantages of sole proprietorship and
per- sonal assets like car, part- nership
house, etc.)
-Harder to transfer ownership
-No continuous life (company
dies w/ owners)
-Hard to raise money
4. Partnership A business owned by two or more individuals
5. Shareholders A corporation is a business owned by .
6. Corporation An incorporated business entity that has filed
ar- ticles of incorporation (paperwork) in a
state of domicile
7. -Easy to transfer ownership -Continuous life
(buy/sell shares)
-Easy to raise money (issue 8. -Tough to start
stock) -Double Taxation
-No personal liability (most you (corporation gets
can lose is the value of the
stock)
,FSU ACG 2021 Exam 1 questions with 100%
complete solutions graded A+ updated
Advantages of corporations
Disadvantages of corporations
,FSU ACG 2021 Exam 1 questions with 100%
complete solutions graded A+ updated
taxed on profit to the
government and then owners
get taxed on profit)
-No control (shareholders make
deci- sions)
-More government regulations (SEC)
-Principal-Agent problem (CEO
make decisions, no input from
shareholders)
9. Stock A piece of paper that grants you
ownership of a company for a given
price
10. Dividend A payment of cash to a shareholder
11. Accounting All three (sole proprietorship, partnership,
and corporation) are separate
entities.
12. Legal Only a corporation is a separate entity.
13. Financial accounting The information system that shows the
economic events of a corporation. This
system identifies, records, and
communicates all info to interested parties
such as stockholders.
14. Revenues The money that comes in
15. Expenses The money that goes out
16. Internal users- Managerial accounting People within the company (marketing
depart-
,FSU ACG 2021 Exam 1 questions with 100%
complete solutions graded A+ updated
ment management, finance dept., human re-
source dept., etc.)
17. External users- Financial accounting People outside the company (shareholders,
customers, creditors, taxing authorities, labor
