11 Business 1.2 Types of Business

cd bragg
Quiz by cd bragg, updated more than 1 year ago
cd bragg
Created by cd bragg almost 7 years ago


Cambridge Preliminary Business Studies, Chapter 2 - Multiple Choice

Resource summary

Question 1

What would be an advantage of a business being registered as a sole trader?
  • It may have restrictions on the amount of money that it could borrow
  • The owner is responsible for all the decisions affecting the business
  • The personal assets of the owner could be sold in the event that the owner is unable to meet the financial obligations of the business
  • Funds used to operate the business are generally provided by the owner

Question 2

How may a public company be best defined?
  • A business that is listed on the Australian Securities Exchange and has ownership open to all members of the public
  • A business that is owned and operated by government
  • A business that is open for ownership by a select group of people
  • A government business that is in the process of being sold to private investors

Question 3

Jannon purchases shares in a public company listed on the Australian Securities Exchange. What is the name given to the income that Jannon would receive from this?
  • Profit
  • Yield
  • Return on Investment
  • Dividend

Question 4

Stephanie is employed by Arnott’s to prepare and mix ingredients as part of the process of making biscuits. Which industry does Stephanie work in?
  • Primary
  • Secondary
  • Tertiary
  • Quaternary

Question 5

Each year a public company must release a document to its shareholders outlining the financial performance of the business over the past year. What is this report known as?
  • Prospectus
  • Annual Report
  • Financial Accounts Summary
  • Shareholder Report

Question 6

What is the process of organising and operating a government business enterprise on private sector principles known as?
  • Corporatisation
  • Privatisation
  • Nationalisation
  • Entrepreneurship

Question 7

What is the name given to businesses that are registered as legal entities separate from their owners?
  • Sole Traders
  • Unincorporated Businesses
  • Incorporated Businesses
  • Private Companies

Question 8

Paperlix is a medium-sized private company that specialises in the production of recycled paper. It is considering the possibility of becoming a public company. What would be an advantage of this?
  • The business would move from an unlimited liability to a limited liability company
  • It would be able to access external funds for future growth and expansion strategies
  • Existing shareholders would remain responsible for the long-term and day-to-day operations of the business
  • The business would move from an incorporated business entity to an unincorporated business entity

Question 9

What would be a primary aim of a public sector business?
  • To provide essential services to the community that, for various reasons, the private sector does not supply
  • To achieve a profit on the services that it provides to the community
  • To compete with private sector businesses across a range of industries, including telecommunications and postal services
  • To employ Australians

Question 10

Through which organisation are shares in public companies traded?
  • The Stock Exchange Association of Australia
  • The Australian Market of Exchange
  • The Australian Securities Exchange
  • The Australian Stock Market
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