Business studies section 1

A business is:

• An organisation that always makes a profit

• Producing only the goods and services society wants

• Producing goods and services and adding value to these

• Employing up to 20 people on a full time basis

Spanline Pty Ltd is a well-known home extension company. From its name we know it is

• A sole trader

• A public company

• An SME

• A private company

Which of the following statements is true?

• All businesses exist to make profit

• Businesses are a major source of innovation

• All government businesses exist to make profit

• Businesses exist to compete with each other

A busy café is an example of what type of industry

• Primary

• Quaternary

• Quinary

• Manufacturing

The roles of business are:

• To provide employment, create wealth and produce goods and services

• To provide employment, create wealth and manage the economy

• To provide employment, reduce inflation and manage the economy

• To provide recreation facilities, create wealth and produce goods and services

Marspi Building Services is a private company that has not been able to meet its financial obligations. The NSW Supreme Court has decided to appoint an independent party to sell the assets of the business. What is the business now considered to be in?

• receivership

• liquidation

• bankruptcy

• cessation

Jim’s Lawnmowing franchise specialises in home garden maintenance.

This business belongs to which industry sector?

• Secondary

• Tertiary

• Quaternary

• Quinary

Jessica is 18 and very conscious of a healthy lifestyle. There is a range of businesses responding to her needs.

Which of the following environmental influences is impacting on these businesses?

• Government

• Legal

• Cultural

• Consumer tastes

Profit is:

• Always given to the owner/s of a business

• The only reward for taking risks in business

• The difference between revenue and expenditure

• All of the above

What does a sole trader who can no longer meet their debts face?

• bankruptcy

• liquidation

• prison

• voluntary default