Understanding Business Enterprises and Stakeholders

What is the primary purpose of a not-for-profit business?

• To maximise profits for shareholders

• To provide goods and services for the community

• To compete with other businesses

• To expand internationally

Which of the following is an example of a public sector organisation?

• Sole trader

• Private limited company (Ltd)

• Government department

• Cooperative

What type of liability does a sole trader have?

• Limited liability

• Unlimited liability

• Joint liability

• No liability

Which sector involves the extraction of raw materials?

• Primary

• Secondary

• Tertiary

• Quaternary

What is the size classification of a business with 30 employees?

• Micro

• Small

• Medium

• Large

Which of the following is a reason for business success?

• High employee turnover

• Strong customer service

• Lack of innovation

• Poor financial management

What is a community interest company (CIC)?

• A type of public corporation

• A not-for-profit organisation

• A private limited company

• A government department

Which stakeholder is considered internal to a business?

• Suppliers

• Customers

• Managers

• Competitors

What is the main function of the human resources department?

• To manage financial accounts

• To oversee production processes

• To recruit and manage staff

• To develop marketing strategies

Which of the following is a feature of a franchise?

• Owned by the government

• Operates independently without any brand association

• Operates under a parent company's brand

• Only found in the tertiary sector