1. Question 1:

• Proficient-level:
• Identify and describe the three basic forms of business organizations.
• What are the advantages and disadvantages of each form of ownership?
• Distinguished-level:
• Business entities can also be categorized by the type of business activities they perform. Identify and describe the three types. What do all three types have in common?

1. Question 2:

• Proficient-level:
• Identify the primary objectives of every business.
• What are the four basic financial statements that measure the primary objectives of every business?
• Describe what information each statement presents and which of the primary objective(s) can be met through the information presented on the statement.
• Distinguished-level:
• Describe the difference between an asset, liability, and equity on a company's balance sheet.