IB Chapter 1.2

What does the public sector primarily aim to provide?

• Products for international trade

• Economic, Social, and Political stability through basic services

• High-profit margins for shareholders

• Exclusive ownership rights to individuals

Who typically owns businesses in the private sector?

• Government agencies

• Non-profit organizations

• Private individuals or entities

• Foreign investors

What is a characteristic of a private business?

• It is listed on the stock exchange

• It is owned by the government

• It is owned by an individual or a group to make a profit

• It provides services without the intention of making a profit

What is a key feature of a public business?

• It is owned by a single individual

• Its shares are traded on the stock exchange

• It does not aim to make a profit

• It is not regulated by any form of government

Which of the following is NOT listed as a reason to set up a business in the provided material?

• Desire to help

• Educational purposes

• Boredom from doing nothing

• Opportunity presents itself

What is a market niche often described as?

• A successful product

• A hole in the market

• A marketing strategy

• A business plan

Which of the following is NOT a method for identifying market opportunity?

• Chance

• Primary research

• Secondary research

• Guesswork

Which of the following is NOT listed as a problem faced by startups in the provided material?

• Inadequate funding

• Inexperienced management

• Over-diversification of products

• Intense competition

According to the learning material, what can be a consequence of a slow buildup of customer base for startups?

• Increased market share

• Run out of working capital

• Faster product development

• Better location factors

Which of the following is one of the processes to start up a business?

• Conduct employee training

• Tell taxman (for sole traders)

• Launch a marketing campaign

• Organize a launch event