Business Classification & Structure Quiz

What is the primary function of a business organization?

• To meet legal requirements

• To satisfy needs

• To use resources

• To achieve objectives

Which sector involves extracting natural resources?

• Quaternary Sector

• Primary Sector

• Secondary Sector

• Tertiary Sector

What is a characteristic of a sole trader?

• Complex administration

• Shared decision making

• Limited liability

• Unlimited liability

Which of the following is NOT a business function?

• Finance

• Marketing

• Research and Development

• Legal Affairs

What does the term 'economy of scale' refer to?

• Increased profits with decreased output

• Constant costs with increased output

• Increased costs with increased output

• Decreased costs with increased output

What type of business structure is owned by two or more people?

• Sole Trader

• Partnership

• Limited Company

• Public Limited Company

Which of the following is a disadvantage of a partnership?

• Easy to set up

• Unlimited liability

• Limited liability

• Shared decision making

What is the main focus of the finance department in a business?

• Production processes

• Human resource management

• Control of money

• Marketing strategies

In a mixed economy, who decides what to produce in the public sector?

• The government

• Private companies

• Consumers

• Shareholders

What is a key advantage of limited companies?

• Complex administration

• Unlimited liability

• Shared profits

• Limited liability