business organisation

The best definition of a sole trader is a business that

• only employs one person
• is owned by one person
• has a single customer
• is a single firm in the industry

One disadvantage of a sole trader business is that

• capital is limited to the owner's savings and bank loans
• decisions take too long to make
• owners may disagree 

One of the advantages of a partnership is that

• all partners have limited liability
• shares can be sold on the Stock Exchange
• the business can survive the death of the partners
• the business has access to more capital than a sole trader

The people who make the major policy and financial decisions in a corporation are the 

• investors
• board of directors
• managers
• owners

A(n) ______ is a short, specific written declaration of the reason a business exists and what it wants to achieve.

• statement of intent
• affirmation of purpose
• mission statement
• declaration of principle

What are the 5 key functional areas that may come up in the exam paper?

• HR, Finance, Operation, Admin & ICT, Marketing
• HR, Finance, Customer Service, Admin & ICT, Marketing
• HR, Finance, Operation, Admin & ICT, Product Management
• HR, Finance, Logistics, Admin & ICT, Marketing

What is the key responsibility of the marketing functional area? 

• It is where they think of ways to sell the products to customers
• It is where they make the products
• It is where they organise and deal with people in the organisation
• It is where they pay for the running of the business

Which of the following describes a local business?

• A business that has operations in two countries

• A business that has 20 locations in a particular country

• A business that operates in its own community

• A business that has locations on three continents

Which of the following describes a NATIONAL business?

• It has 20 locations within its country.

• It has 3 locations in one city.

• It has locations in 4 countries around the world.

• It has one location in its own community.

What is a business plan?

• Written document that only outlines the business practices of the new business.

• Written document that describes the financial aspects of the business.

• Written document that only describes the ownership of the business.

• Written document that describes all the steps necessary for opening and operating a successful business.