UNIT 1 BM Flashcardz

Front

What is the primary purpose of a business?

Back

To satisfy customer needs and generate profit

Front

Which of the following is NOT a function of a business?

• Production
• Services
• Marketing
• Legislation
• Finance

Back

Legislation

Front

What type of business activity involves extracting raw materials from the earth?

Back

Primary sector

Front

The quaternary sector focuses on:

Back

Providing knowledge-based activities

Front

Which of the following is NOT a characteristic of entrepreneurship?

• Innovation
• Risk-taking
• Opportunity recognition
• Government funding
• Market expansion

Back

Government funding

Front

Why do new businesses face financial constraints?

Back

Limited access to capital

Front

Which business structure is owned and controlled by a single person with unlimited liability?

Back

Sole trader

Front

In a limited partnership, what is the liability status of the partners?

Back

Some partners have limited liability

Front

What differentiates a private company from a public company?

Back

Private companies do not sell shares publicly

Front

What is the purpose of a vision statement?

Back

To outline an organization’s long-term aspirations