AS Level Chapter 2 Review

Which of the following best describes a public sector organization?

• Operated by private individuals
• Run for profit
• Owned and run by the government
• Funded by private investors

What is the primary objective of a private sector business?

• Serve the public
• Maximize profit
• Provide employment
• Minimize environmental impact

What term describes the process of a country shifting from the primary to the secondary sector?

• Deindustrialization
• Globalization
• Urbanization
• Industrialization

Which economic sector is involved in the extraction of natural resources?

• Primary
• Secondary
• Tertiary
• Quaternary

In which sector would you classify a business focused on IT and research?

• Primary
• Secondary
• Tertiary
• Quaternary

Which type of business ownership is simplest and most common?

• Partnership
• Sole trader
• Private limited company
• Public limited company

What is a key disadvantage of a sole trader business?

• Shared liability
• Complex to set up
• Limited liability
• Unlimited liability

In a partnership, what document typically outlines the roles and responsibilities of each partner?

• Memorandum of Association
• Articles of Incorporation
• Deed of Partnership
• Business License

Which of the following is an advantage of a partnership?

• Limited liability
• Unlimited liability
• Specialization
• Less capital

What is a significant disadvantage of a partnership?

• Limited liability
• Complex to set up
• Shared profits
• Easy to transfer ownership