Why do some business owners prefer to become limited companies for financial protection?

• To avoid sharing control with new partners or shareholders

• To protect their personal financial position due to limited liability

• To raise more capital by becoming a public limited company (PLC)

• To maintain complete control of their business

What is one of the main reasons why owners change the legal status of their business?

• To change the type of products or services they offer

• To reduce the size of their business

• To change the type of organisation and raise capital

• To limit their business activities to a specific region

Which type of business ownership is most likely chosen by hairdressers, window cleaners, and gardeners?

• Partnerships

• Public limited companies (PLCs)

• Sole traders

• Private limited companies

What might be a reason for a growing business to remain a private limited company instead of becoming a PLC?

• To pay dividends to their shareholders

• To reinvest a large portion of its profits

• To dominate global markets

• To reduce the amount of capital raised

Why might a sole trader choose to remain as such instead of seeking growth through other forms of business ownership?

• To avoid the responsibility associated with growth

• To be able to dominate global markets

• To raise more capital for expansion

• To share control with new partners or shareholders

Which sector is involved in the production of services in the economy?

• Primary sector

• Secondary sector

• Tertiary sector

• Quaternary sector

What is the term used to describe the decline in manufacturing and increase in the tertiary sector?

• Industrialisation

• Post-industrialisation

• De-industrialisation

• Re-industrialisation

In less developed countries, which sector is likely to have more employment?

• Primary sector

• Secondary sector

• Tertiary sector

• Quaternary sector

What is one of the reasons for de-industrialisation in developed countries?

• Decrease in public sector services

• People prefer to spend more income on manufactured goods

• Advances in technology mean that machines replace people

• Decrease in competition from other countries

Why might businesses that make large or heavy products choose to locate close to their customers?

• To increase the cost of transportation

• To keep transport costs down

• To avoid direct sales to customers

• To reduce the number of employees needed