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Cambridge Preliminary Business Studies, Chapter 2 - Multiple Choice

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11 Business 1.2 Types of Business

11 Business 1.2 Types of Business

Question 1 of 10

1

What would be an advantage of a business being registered as a sole trader?

Select one of the following:

  • 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

Explanation

Question 2 of 10

1

How may a public company be best defined?

Select one of the following:

  • 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

Explanation

Question 3 of 10

1

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?

Select one of the following:

  • Profit

  • Yield

  • Return on Investment

  • Dividend

Explanation

Question 4 of 10

1

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?

Select one of the following:

  • Primary

  • Secondary

  • Tertiary

  • Quaternary

Explanation

Question 5 of 10

1

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?

Select one of the following:

  • Prospectus

  • Annual Report

  • Financial Accounts Summary

  • Shareholder Report

Explanation

Question 6 of 10

1

What is the process of organising and operating a government business enterprise on private sector principles known as?

Select one of the following:

  • Corporatisation

  • Privatisation

  • Nationalisation

  • Entrepreneurship

Explanation

Question 7 of 10

1

What is the name given to businesses that are registered as legal entities separate from their owners?

Select one of the following:

  • Sole Traders

  • Unincorporated Businesses

  • Incorporated Businesses

  • Private Companies

Explanation

Question 8 of 10

1

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?

Select one of the following:

  • 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

Explanation

Question 9 of 10

1

What would be a primary aim of a public sector business?

Select one of the following:

  • 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

Explanation

Question 10 of 10

1

Through which organisation are shares in public companies traded?

Select one of the following:

  • The Stock Exchange Association of Australia

  • The Australian Market of Exchange

  • The Australian Securities Exchange

  • The Australian Stock Market

Explanation

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