Sta.

Cruz Institute
Sta. Cruz, Ilocos Sur
S.Y. 2021-2022

GRADE LEVEL: GRADE 11

SUBJECT: FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1
QUARTER: First Quarter (Week 6)
LESSON TITLE: TYPES OF BUSINESSES ACCORDING TO ACTIVITIES

NAME: GRADE AND SECTION:

EVALUATION:

I. Multiple choice. Read and analyze each item. Write the letter of the best answer before
the number:

1. Which of the following is NOT considered a service company?

a. Beauty salon
b. Carwash business
c. Bus company
d. Bakeshop
2. Which of the following statements is true?
a. Operating cycle is the time it takes for a company to create products, sell and deliver them
to customers
b. The time it takes for a company to create products, sell them and collect cash payments
from customers is called servicing time
c. The time it takes for a company to create products, sell them and collect cash payments
from customers is called operating cycle
d. Operating cycle is the average length of time a company runs a business
3. Services performed by services companies may include all of the following , EXCEPT
a. Professional services
b. Legal advice
c. Transportation service
d. None of the above
4. Francesca Co., an accounting, earns P120,000 from its audit engagement with San Miguel
Corp. The P120,000 is considered as Francesca Co’.s?
a. Service revenue
b. Sales revenue
c. Capital
d. Investment
5. The major input used by service companies is?
a. Raw materials
b. Labor
c. Overhead
d. All of the above
6. The operating cycle of a service company involves which of the following?
a. Paying out labor and other operating expenses
 b. Performing services
c. Collecting cash payments
d. All of the above
7. Which of the following statements regarding service companies is correct?
a. Service companies are firms that generally use their employees to provide tangible
products to customers
b. Service companies basically provide almost the same services to their customers
c. Service companies are firms that generally use their employees to provide intangible
products or services to customers
d. A department store may be considered a service company because the sales ladies assist
the customers in buying merchandise
8. Which of the following is considered a service type of business?
a. Shaskia’s cakes and pastries bakery
b. Karla’s meatshop
c. Dresses by Pauline
d. Patricia’s school for toddlers
9. The disadvantage of running a service company are the following, EXCEPT
a. Inability to standardize services as services performed vary from one client to another
b. Existence of inventory
c. The reliance on highly skilled and motivated employees
d. Managing human capital
10. What is the primary sources of revenues of service companies?
a. Performance of service
b. Sale of equipment
c. Sale of finished goods
d. Sales of component parts
11. The main difference of a merchandising company over a service company is?
a. It does not need employees
b. It has no inventory
c. It provides tangible products
d. It has production facilities
12. A merchandising company that sells goods directly to customers is called?
a. Retailer
b. Wholesaler
c. Manufacturer
d. None of the above
13. A merchandising company that sells goods directly to retailer is called?
a. Major retailer
b. Wholesaler
c. Manufacturer
d. None of the above
14. Sophia buys candies from candies manufacturing and sells them in her sari-sari store. Sophia
earns revenue from?
a. The sales of candies manufacturing
b. The purchase of supplies of candies
c. The sale of candies in her sari-sari store
d. All of the above
15. This term refers to goods that held by a company and are subsequently sold to customers?
a. Supply of goods
b. Goods held by company
c. Finished goods
d. Inventory
16. Which of the following is considered a merchandising company?
a. National bookstore
b. SM hypermarket
c. Rey’s convenience store
d. All of the above
17. These are the revenues earned by merchandising companies?
a. Sales revenue
b. Sales
 c. Service revenue
d. Both a and b are correct
18. These companies use raw materials, components, or parts which are processed using
machines, computers and labor to create their own products.
a. Service companies
b. Merchandising companies
c. Manufacturing companies
d. Partnership
19. Samsung is a major player in the electronics industry with products such as tablets,
smartphones, cameras, and laptops. It distributes its product to its stores and dealers all over
the country. Some of its authorized dealers include Robinsons appliances; Abenson, SM
appliance and Automatic Centre. Which is considered a manufacturing company?
A. Samsung
B. Robinsons appliances
C. Abenson
D. All of the above except a
20. Based on number 19, which of the following is considered a retail company?
a. Samsung
b. Robinsons appliances
c. Abenson
d. All of the above except a

ENRICH:

Discuss the Difference to each other of the three types of business according to its activities which is
as follow, SERVICE, MERCHANDISING and MANUFACTURING.

EXECUTE

Conduct a research on different businesses in your community and identify their business type.
Choose at least one company from each business type and describe its different activities. Put your
answers in a bond paper.