CAMBRIDGE SECTION 1

Which of the following is NOT an example of a business activity?

• a) Manufacturing goods
• b) Offering education services
• c) Hosting a birthday party
• d) Providing legal advice

What is the primary objective of PLC?

• a) Maximizing shareholder profits
• b) Providing benefits to the community
• c) Achieving social objectives
• d) Promoting environmental sustainability

What is a sole trader?

• a) A business owned by multiple people
• b) A business that is run by a government agency
• c) A business that is owned and operated by one person
• d) A business that operates as a non-profit organization

Which of the following is a characteristic of a partnership?

• a) Limited liability for the partners
• b) Unlimited liability for the partners
• c) A single owner who is responsible for the business
• d) A legal entity separate from its owners

What is the main benefit of a private limited company?

• a) The ability to raise large amounts of capital through the sale of shares
• b) Limited liability for the company's owners
• c) A simple and easy legal structure
• d) The ability to avoid paying taxes

Which of the following is a disadvantage of a public limited company?

• a) Limited liability for the company's owners
• b) Legal obligation to release financial information annually
• c) The need to pay taxes on profits
• d) The ability to keep ownership and control of the business

Which of the following is an example of internal growth for a business?

• a) Merging with another company
• b) Acquiring a competitor
• c) Offering promotions on poor selling products
• d) Opening new locations

What is a business plan?

• a) A document outlining a company's mission

• b) A description of a company's products or services

• c) A detailed written document outlining the main details, purpose & aims of a business

• d) A financial statement showing a company's revenue and expenses

What is a franchise?

• a) A business owned by a group of shareholders
• b) A business that is run by the government
• c) A business that is owned and operated by a single person
• d) A business that operates under a parent company's brand and business model

Which of the following is a stakeholder in a business?

• a) Government

• b) Shareholders

• c) Suppliers

• d) All of the above