agribusiness test 3

a legal structure is a framework for how

a business entity operates

what are the types of legal structures

sole proprietorships, partnerships, corporations, LLC’s

what are the 2 main types of partnerships

general partners and limited partners

what legal structure is known to be the most flexible

sole proprietorship

selecting the proper legal structure depends on the

type and size of the business

which legal structure is owned and managed by a single individual

sole proprietorship

a voluntary association of two or more people as co-owners is known as a

partnership

what does LLC stand for

limited liability companies

incorporators are also known as

shareholders

profits and loans are

shared in a general partnership

what are the 4 ways to organize an organizational structure

function, product, geographic area, line and staff activities

which individual is typically at the top of the organizational chart

CEO/president

which individual is typically at the bottom of the organizational chart

sales associate

how many principles of organization are there

4

a business should keep the _____ to a minimum

support staff

a small business and a large business will not have the

same organizational structure

it is more effective and efficient to keep working units

small

a business should keep the organizational structure

small

the activities must be done well if the business is to achieve its purpose and objective defines

critical tasks

the method by which work flows through an organization defines

organizational structure

the balance sheet is a statement of the financial condition of a business on a

specific date

______ is equal to the profit left after income taxes have been paid

net profit

an P&L statement is also known as

an income statement

when expenses exceed revenues, the firm

had a loss

when revenues exceed expenses, the firm

made a profit

which is an example of a fixed asset

land

accounting is the process of recording, classifying, and summarizing

business transactions

T/F: the purpose of accounting documents is only to measure the money coming in to the firm

false

the accounting period typically deosn’t exceed

one year

what are the 2 types of liabilities

current and long term

owners equity is

the difference between the firms assets and liabilities