1.1 Nature of business

The person who risks his or her time, energy and money to start a business is called:

• an employer

• an entrepreneur

• an innovator

• a financier

An example of a secondary industry is:

• Plastics Manufacturing Ltd

• Zenon Mining

• Canberra Legal Centre

• Heritage Motel

Businesses are important to the Australian economy because they:

• provide goods and services to satisfy consumers' wants

• provide employment for millions of people

• contribute to Australia's Gross Domestic Product (GDP)

• all of the above

Items that can be seen and touched are known as...

• Goods

• Services

The difference between what it costs to make and sell a product and what a customer pays for it.

• Cost

• Profit

• Information

How can a business be classified by size?

• By the color of its logo

• By the type of products sold

• By the number of employees

• By the CEO's age

What is a characteristic of a small business?

• Operates globally

• Less than 20 employees

• More than 200 employees

• Has unlimited shareholders

What defines a micro business?

• More than 50 employees

• Operates in multiple countries

• Less than 5 employees

• Has a large market share

Which of the following is a characteristic of a global business?

• Operates across the world

• Operates in a single town

• Has less than 10 employees

• Sells only locally made products

What sector does farming belong to?

• Primary industry

• Tertiary sector

• Quinary sector

• Secondary industry