Part 1, U3 AOS1 Business Foundations

What is a sole trader?

• A business owned and operated by two or more people.

• A business owned and operated by one person.

• A business with shares traded on the Australian Securities Exchange.

• A business that operates to fulfil a social need.

Which of the following is a characteristic of a partnership?

• Unlimited liability.

• Shares are openly traded on the Australian Securities Exchange.

• A maximum of 50 non-employee shareholders.

• Owned and operated by the government.

What is the primary objective of a social enterprise?

• To maximise shareholder returns.

• To fulfil a social need.

• To increase market share.

• To minimise business expenses.

What does limited liability mean for shareholders?

• Shareholders are personally responsible for all business debts.

• Shareholders are not personally responsible for the debts of the business.

• Shareholders must manage the daily operations of the business.

• Shareholders have unlimited voting rights.

Which type of business is owned and operated by the government?

• Sole trader.

• Partnership.

• Government business enterprise.

• Private limited company.

What is the process of incorporation?

• The process of merging two businesses.

• The process of becoming a registered company and a separate legal entity.

• The process of issuing shares to the public.

• The process of dissolving a business.

What is market share?

• The total revenue of a business.

• The proportion of total sales in a market controlled by a business.

• The number of employees in a business.

• The number of products a business sells.

Which of the following is an advantage of a private limited company?

• Unlimited liability for shareholders.

• Shares are offered to the public.

• Shareholders have limited liability.

• Business is owned by a single individual.

What is corporate social responsibility?

• The legal obligations a business has to its shareholders.

• The obligations a business has beyond legal requirements to the well-being of employees, customers, shareholders, community, and the environment.

• The process of maximising profits for shareholders.

• The strategy to increase market share.

What is the main disadvantage of a sole proprietorship?

• Limited liability.

• Unlimited liability.

• Easy to transfer ownership.

• High regulatory requirements.