BUSINESS ORGANISATION

1. 1.Which of the following is not a feature of business?

• a) Profit motive

• b) Government ownership

• c) Risk and Uncertainty

• d) Economic activity

2.What is the significance of the development stages of a business?

• a) To determine the number of competitors

• b) To assess the environmental impact

• c) To understand the challenges and opportunities at different phases

• d) To calculate the tax liabilities

3. 3.What is the primary difference between industry and commerce?

• a) Industry involves manufacturing, while commerce involves buying and selling of goods and services.

• b) Industry is a government sector, while commerce is a private sector.

• c) Industry is limited to physical products, while commerce deals with intangible services.

• d) Industry focuses on imports, while commerce focuses on exports.

4. 4. What is one of the primary objectives of business organization?

• a) Environmental conservation

• b) Charitable donations

• c) Maximizing shareholder wealth

• d) Promoting political agendas

5.What is a modern business characteristic that emphasizes the use of advanced technology?

• a) Traditional approach

• b) Small-scale operations

• c) Innovation and technology adoption

• d) Manual labor-intensive

6.Business is solely concerned with the production of goods.

• A. True

• B. False

Answer explanation

Business can also involve the provision of services.

7.Business plays a significant role in economic development by generating employment opportunities.

• A. True

• B. FALSE

Answer explanation

Business activities create jobs and contribute to economic growth.

8.The terms "industry" and "commerce" can be used interchangeably with "business."

• A. False

• B. True

Answer explanation

While related, "industry" refers to the production of goods, and "commerce" refers to the distribution and exchange of goods and services.

9.Business organizations exist solely for their own profit and do not consider societal well-being.

• A. True

• B. False

Answer explanation

Many business organizations are involved in corporate social responsibility (CSR) initiatives.

10.One of the characteristics of a business organization is limited liability for its owners.

• A. True

• B. False

Answer explanation

Limited liability is a common characteristic of many business organizations like corporations.