UNIT 1 BM Quizz

What is the primary purpose of a business?

• To provide social services

• To satisfy customer needs and generate profit

• To regulate financial markets

• To conduct academic research

• To minimize costs at all times

Which of the following is NOT a function of a business?

• Production

• Services

• Marketing

• Legislation

• Finance

What type of business activity involves extracting raw materials from the earth?

• Tertiary sector

• Secondary sector

• Primary sector

• Quaternary sector

• Cooperative sector

The quaternary sector focuses on:

• Manufacturing products

• Selling goods and services

• Providing knowledge-based activities

• Extracting natural resources

• Managing supply chains

Which of the following is NOT a characteristic of entrepreneurship?

• Innovation

• Risk-taking

• Opportunity recognition

• Government funding

• Market expansion

Why do new businesses face financial constraints?

• Lack of customer demand

• Limited access to capital

• High levels of government support

• Excessive cash flow

• Oversupply of workforce

Which business structure is owned and controlled by a single person with unlimited liability?

• Corporation

• Partnership

• Sole trader

• Cooperative

• Franchise

In a limited partnership:

• All partners have unlimited liability

• Some partners have limited liability

• The government owns the partnership

• Partners do not share profits

• It is only available to private companies

What differentiates a private company from a public company?

• Private companies do not sell shares publicly

• Public companies do not have shareholders

• Private companies cannot make profits

• Public companies are always owned by the government

• Private companies must have at least 500 employees

What is the purpose of a vision statement?

• To define daily operations

• To outline an organization’s long-term aspirations

• To describe short-term goals

• To detail financial strategies

• To increase investor engagement