Quiz  /  Sole Proprietorship Class 9 MCQ Questions With Answers

  • 1. 
    What is the most common form of business ownership?

  • Corporation
  • Company
  • Sole Proprietorship
  • LLC

  • 2. 
    The financial condition of a business refers to its financial strength.

  • True
  • False

  • 3. 
    This type of organization is a legal entity separate from its owners.

  • Sole proprietorship
  • Partnership
  • Corporation
  • Franchise

  • 4. 
    Example of sole proprietorship

  • multinational company
  • tailor
  • lawyer's firm
  • bank

  • 5. 
    Which of the following is the money or other resources needed to pay for a part or parts of the company?

  • investment
  • purchasing cost
  • grant
  • finance

  • 6. 
    Owned by one individual.

  • Proprietorship
  • Partnership
  • Corporation
  • None of the above

  • 7. 
    When preparing a balance sheet, the amount of owner's capital is obtained from

  • the general ledger
  • the work sheet's balance sheet credit column
  • the income statement
  • none of these

  • 8. 
    Words, symbols, names or devices used to specify goods and differentiate one good from another are which of the following?

  • Trademark
  • Domain names
  • Patents
  • Copyrights

  • 9. 
    Groups of individuals who invest money in various types of companies in search of making a profit are known as which of the following?

  • investors
  • capitalists
  • socialists
  • investing entrepreneurs

  • 10. 
    A comparison between two components of financial information.

  • Financial ratio
  • Ratio analysis
  • Money ratio
  • Cash ratio

  • 11. 
    An amount written in parentheses on a financial statement indicates an estimate.

  • True
  • False

  • 12. 
    This is NOT a disadvantage of Sole Proprietorship

  • Limited Capital
  • Lack of continuity
  • Quick decisions and prompt action
  • Limited Size
  • Lack of managerial expertise

  • 13. 
    Which financial statement reports the financial condition of the business?

  • Income Statement
  • Balance Sheet
  • Statement of Owner's Equity
  • Work sheet

  • 14. 
    Which of the following are protections provided to authors or original works such as literature?

  • Trademarks
  • Domain names
  • patents
  • copyrights

  • 15. 
    Owners share the risks and the profits.

  • Proprietorship
  • Partnership
  • Corporation
  • None of the above

  • 16. 
    Which is not a section on the income statement?

  • Revenue
  • Expenses
  • Owner's Equtiy
  • Net Income/Net Loss

  • 17. 
    McDonald's and Burger King are examples of....

  • Sole Proprietorships
  • Partnerships
  • Corporations
  • Franchises

  • 18. 
    A balance sheet reports financial information over a specific period of time.

  • True
  • False

  • 19. 
    A _______ forms boards to act as governing bodies. It is the most complicated form of business.

  • franchise
  • partnership
  • sole proprietorship
  • corporation

  • 20. 
    The calculation and interpretation of financial ratios

  • Financial Ratio
  • Money Ratio
  • Ratio Analysis
  • Cash Ratio

  • 21. 
    A _____ is owned and operated by one individual; an example would be a plumber.

  • franchise
  • partnership
  • sole propietorship
  • corporation

  • 22. 
    The major policy and financial decision makers of a corporation are determined by the...

  • CEO/GM/President
  • Chairman of the Board
  • Shareholders
  • Board of Directors

  • 23. 
    Which of the following is money borrowed from a business or investment which must be repaid over time with interest?

  • equity capital
  • venture capital
  • debt capital
  • investment capital

  • 24. 
    Which of the following is the money raised by a business or investor in exchange for share of ownership of the company?

  • equity capital
  • venture capital
  • deb capital
  • investment capital

  • 25. 
    Information needed to prepare an income statement's revenue section is obtained from a work sheet's Account Title column and

  • Income Statement Debit Column
  • Income Statement Credit Column
  • Balance Sheet Debit Column
  • Balance Sheet Credit Column

  • 26. 
    It is NOT a characteristic of sole proprietorship

  • Limited liability
  • Easy to start and wind up
  • Limited Capital
  • No sharing of profits and losses
  • One Man's capital and control
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