Marketing and Business Concepts

What is the primary role of business in society?

• To maximize profits only

• To provide goods and services that meet societal needs

• To create employment opportunities exclusively

• To collect taxes for the government

Which type of business ownership structure provides limited liability protection while allowing for easy transfer of ownership?

• Sole proprietorship

• General partnership

• Corporation

• Limited liability partnership

What is entrepreneurship best defined as?

• Managing an existing business

• Working for a large corporation

• Investing in the stock market

• Taking risks to start and operate a business

Corporate social responsibility (CSR) primarily focuses on:

• Environmental sustainability and social impact

• Maximizing shareholder profits

• Reducing operational costs

• Expanding market share

Which financial document provides a snapshot of a company's assets, liabilities, and equity at a specific point in time?

• Income statement

• Cash flow statement

• Balance sheet

• Annual report

What is the main purpose of trade credit in business?

• To invest in stocks and bonds

• To allow delayed payment for goods

• To pay employee salaries

• To fund research and development

A business's ability to convert assets into cash is known as:

• Solvency

• Profitability

• Market share

• Liquidity

Which type of credit is typically used for short-term business financing needs?

• Mortgage loans

• Line of credit

• Corporate bonds

• Equipment leasing

The process of evaluating a business's financial health through ratio analysis is part of:

• Marketing research

• Human resource management

• Financial analysis

• Operations management

What is the main advantage of a sole proprietorship?

• Limited liability protection

• Ease of raising capital

• Complete control over the business

• Continuous existence