IGCSE Business Studies unit 1 summative quiz

What is the main characteristic that distinguishes a private limited company from a public limited company?

• Shares can be sold on the stock exchange

• Limited liability protection

• Shares can only be sold to family and friends

• Requirement to publish accounts

Which business structure typically has the highest level of personal risk for the owner?

• Public limited company

• Sole trader

• Private limited company

• Franchise

What is a key advantage of operating as a franchise?

• Complete control over business decisions

• Lower initial setup costs

• Using an established brand name

• Sharing profits with other owners

Which stakeholder group is most likely to be interested in the job security of a business?

• Shareholders

• Customers

• Employees

• Suppliers

What is the primary objective of a social enterprise?

• Maximizing shareholder wealth

• Benefiting the community

• Market dominance

• Rapid expansion

How do public corporations differ from private sector businesses?

• They are owned by individuals

• They provide essential services

• They aim to maximize profits

• They are controlled by the government

Which form of business growth involves taking over another business?

• Internal growth

• merger

• acquisition

• joint venture

What is often the reason why businesses fail?

• Poor cash flow management

• Strong competition

• Economic recession

• all of the above

Which sector would a manufacturing company belong to?

• Tertiary sector

• Secondary sector

• Primary sector

• Quaternary sector

What is a key characteristic of a joint venture?

• Permanent business arrangement

• Single owner control

• Shared resources and risks

• Government ownership