1.

5 Examples of each type of business

 Merchandising Business
1) Drug Store
2) Department Store
3) Clothing Store
4) Bookstore
5) Convenience Store
 Manufacturing Business
1) Bakery
2) Factory
3) Tailoring Shop
4) Printing Shop
5) Automotive Company
 Service Business
1) Law Firms
2) Banks
3) Airlines
4) Salon
5) Restaurants
2. Characteristics of the different forms of business organization.
 Sole Proprietorship
 This type of business organization has one owner who has unlimited liability for the business.
They have complete control over their business.
 Partnership
 This type of business organization does share profit and losses, mutual agency, unlimited
liability, lawful business, and contractual relationship.
 Corporation
 Have Limited liability, shareholder ownership, double taxation, continuing lifespan, and
professional management.
 Cooperative
 Have Open and voluntary associations, have a democratic structure with each member having
one vote, and have an equitable and fair distribution of economic results.
3. 10 examples of the basic elements of accounting.
 Asset

1) Insurance payments 6) Vehicles

2) Retirement Plans 7) Furniture
3) Pensions 8) Real estate
4) Investments 9) Land
5) Property, Plant, and Equipment 10) Marketable securities
 Liability

1) Accounts payable 6) Loan payable

2) Payroll taxes 7) Pension obligations
3) Mortgages payable 8) Deferred tax liabilities
4) Income taxes payable 9) Deferred revenue
5) Current portion of debt payable 10) Interest payable
 Capital

1) Land 6) Machinery
2) Building 7) Vehicles
 3) Office Furniture 8) Patents
4) Computers 9) Copyrights
5) Office Equipment 10) Trademarks
 Income

1) Salary 6) Investments
2) Wages 7) Governments Payments
3) Commission 8) Capital Gains
4) Interest 9) Rent Seeking
5) Dividends 10) Business Profits
 Expense

1) Auditor Fees 6) Rent

2) Bank Fees 7) Utilities
3) Debt placement costs 8) Maintenance
4) Interest expense 9) Depreciation
5) Transportation 10) Insurance