Nature of Business

A business is:

• any activity undertaken by people

• only motivated by maximising profit

• the organised effort of individuals to produce and sell, for a profit, goods and services

• none of the above

The person who risks his or her time, energy and money to start a business is called:

• an employer

• an entrepreneur

• an innovator

• a financier

An example of a secondary industry is:

• Plastics Manufacturing Ltd

• Zenon Mining

• Canberra Legal Centre

• Heritage Motel

The most common type of business entity in Australia is a:

• partnership

• cooperative

• public company

• sole trader

National Foods Limited would most likely be a:

• public company

• private company

• government business enterprise

• partnership

Complacency amongst management normally occurs in the:

• establishment phase

• maturity phase

• post maturity phase

• growth phase

A business's operating environment refers to:

• the nature of the workplace environment that businesses provide for their employees

• the specific external stakeholders with whom the business conducts its business

• those factors over which the business has some degree of control

• none of the above

Businesses are important to the Australian economy because they:

• provide goods and services to satisfy consumers' wants

• provide employment for millions of people

• contribute to Australia's Gross Domestic Product (GDP)

• all of the above

An example of legislation designed to protect the interests of both consumers and business is:

• the Trade Practices Act

• the Broadcasting and Television Act

• the Consumer Affairs Act

• the Small Business Act

Social and ethical responsibility of a business refers to:

• a business'e responsibility only to its shareholders

• a business'e responsibility only to its internal stakeholders

• a business'e responsibility to both its internal and external stakeholders

• a business'e responsibility only to its external stakeholders