Accounting Chapter 2

Name:______________________________________________________________

Type in the appropriate answer and upload to the drop folder. (LastName Chapter 2 Test

Matching

Match the letter next to each form of business with the appropriate item in the following list of advantages or
disadvantages
a. Sole Proprietorship c. Corporation
b. Partnership
____ 1. Easier to raise money

____ 2. Limited expertise

____ 3. Cost more to start up

____ 4. Owner has total control

____ 5. Must share the profits

____ 6. Higher taxes

____ 7. Fewer regulations to follow

____ 8. Easier to transfer ownership

____ 9. Conflict between owners

____ 10. Easy to expand

a. Manufacturing c. Service
b. Merchandising
____ 11. International Business Machines (IBM)

____ 12. The Gap

____ 13. Glendale Medical Center

____ 14. Avis Rent A Car

____ 15. Ford Motor Company

____ 16. Chase Bank

____ 17. Ace Hardware

____ 18. Michigan City Animal Hospital

____ 19. Office Depot

____ 20. WalMart

____ 21. Prudential Insurance

____ 22. Bethlehem Steel Corporation

Short Answer

23. Mary Torres owns and operates a bakery. During the past week she sold 500 loaves of bread at $2.25 per loaf.
The raw materials for each loaf cost Ms. Torres $1.80.

Answer the following questions.

What type of business/es does Ms. Torres operate?

What was her profit on bread sales for the week?

Aside from the cost of raw materials, what other cost will Ms. Torres use to calculate her profits for the week?