TEST BANK CHAPTER 1: AN INTRODUCTION TO THE ROLE OF ACCOUNTING IN THE BUSINESS WORLD Multiple Choice: Choose the best answer to each of the following. 1. A business attempts to earn a profit by a. selling goods or services for more than they are worth. b. performing services at cost. c. selling goods or services for more than they cost to buy, make, or perform. d. distributing cash to stockholders and investors. e. selling goods or services that satisfy the needs of investors and creditors. 2. Businesses are typically categorized as a. industrial, service, and not-for-profit companies. b. service, manufacturing, and limited liability companies. c. for-profit and not-for-profit. d. manufacturing, merchandising, and service companies. e. wholesalers, retailers, and manufacturers. 3. A _______ acts as a middleman and resells goods to others. a. limited liability company b. service company c. Sub S corporation d. partnership e. wholesaler 4. Which of the following are the most common forms of business organization in the U.S. in terms of Total number of organizations Sales and profits a. sole proprietorships corporations b. partnerships corporations c. sole proprietorships partnerships d. Sub S corporations corporations