Business Growth and Organizational Structures Quiz

Which sector of industry involves businesses taking natural resources from the land, such as agriculture and coal mining?

• Primary Sector

• Secondary Sector

• Tertiary Sector

• Quaternary Sector

What is the main purpose of private-sector organisations?

• Stick to agreed budgets

• Provide a good service

• Use public funds effectively

• Maximise profits

What is the main characteristic of a Public Limited Company (PLC)?

• Shares can be sold publically on the stock exchange

• Shares cannot be sold to the public

• No legislation to comply with

• No control over who buys shares

What is the main advantage of operating as a multinational corporation?

• Can take advantage of economies of scale

• Can avoid legal restrictions in the organisation's own country

• Can force local firms out of business

• Can avoid restrictions on imports into a country

What is the main advantage for the Franchisee in a franchise business?

• The franchisee has the advantage of a well-known brand name and an existing customer base

• The franchisee has to devote time and resources to support the franchisee

• The franchisee benefits from national advertisements carried out by the franchiser

• The franchisee will earn a percentage of the profits each year

Which of the following is an example of a public sector organisation?

• Fife Council

• McDonald's

• Kentucky Fried Chicken

• The Body Shop

What is the main aim of Third Sector organisations?

• Maximise profits

• Provide a good service

• Stick to agreed budgets

• Use public funds effectively

What is the main characteristic of a Social Enterprise?

• Owned by the government

• Provides services rather than goods

• Owned by private individuals and investors

• Operates for social and/or environmental purposes

What is the main advantage of Corporate Social Responsibility (CSR) for a business?

• The business gains a good reputation for its caring nature

• Society and the environment are kept in good order, which will benefit the business in the long run

• Customers who agree with the aim are likely to use the business

• The business can attract high-quality staff who believe in the ethics of the business

What is the main method of growth that involves a business developing over a period of time by increasing output, opening new branches/stores, and developing new products?

• Internal/Organic growth

• Vertical Integration

• Horizontal Integration

• Diversification