Exam Business and accounting

Question 1

Share holder

Answer 1

Any person, company or other institutions that owns at least one share of a company’s stocks.

Question 2

Partnership

Answer 2

A form of business structure where the business is owned between two and twenty people who share the responsibility

Question 3

Incorported

Answer 3

Is the legal process used to form a corporate company.

Question 4

Capital

Answer 4

Refers to good that have been produced for the purpose of making final goods for the shelves or for providing services

Question 5

Leasing

Answer 5

A contract outlining the terms under which one party agrees to rent property owned by another party.

Question 6

Small business

Answer 6

Is an independently owned and operated company that is limited in size and in revenue depending on the industry

Question 7

Company

Answer 7

A company is a seperate legal entity capable of holding assets in its own name.

Question 8

Franchise

Answer 8

Is a type of license that a party acquires to allow them to have access to a business.

Question 9

Three ways businesses can be classified by

Answer 9

By size
By industry
By ownership structure

Question 10

What do small business contribute to the economy

Answer 10

• The provide employment
• They provide a range of goods and services locally and conveniently
• Large organisations receive many of their supplies and component parts from small businesses.

Question 11

Explain the battering system

Answer 11

It was the exchange of goods and services between two parties without the involvement of cash.

Question 12

What are the functions of money

Answer 12

Median of exchange
Measure of value
Store of value
Standard of deferred payment

Question 13

List unique characteristics of Australians notes and coins

Answer 13

Polymer substrate
Top to bottom window
Rolling colour effect
Fluorescent ink

Question 14

List three forms of electrical payment

Answer 14

Credit card
Debit card
PayPal

Question 15

Who is the Reserve bank of Australia and what is their role in relation to money in the Australian economy

Answer 15

The RBA is Australia’s central bank charged with managing the finically system and issuing currency

Question 16

Credit card

Answer 16

A small plastic card issued by a bank, allowing holders to purchase goods and services on credit, on the condition they pay back the credit with their funds.

Question 17

Budget

Answer 17

a budget is a plan outlining your anticipated incomes, spendings and savings within a particular time frame.

Question 18

Debtors

Answer 18

People or business that owe money to the business for goods and services already provided

Question 19

Creditors

Answer 19

People or businesses to whom the business owes money for goods and services already provided

Question 20

Income

Answer 20

Money recieved especially on a regular basis, for work or through investment

Question 21

Expenditure

Answer 21

The action of spending funds

Question 22

Liabilities

Answer 22

They are things that take money away from the business

Question 23

Assets

Answer 23

Items owned by an individual or business that has finically value

Question 24

Owners equity

Answer 24

The representation of capital theoretically available for the distribution to shareholders

Question 25

Financial statement

Answer 25

A formal record of the financial activities and position of a business and/or person.

Question 26

Revenue

Answer 26

The amount of money that a company receives during a specific period.

Question 27

Expense

Answer 27

The outflow of money or assets to another individual or company as payment for an item or service.

Question 28

What is the account equation

Answer 28

Assets-liabilities= owners equity