Nature of Business

Which of the following statements about profit is FALSE?

• Profits encourage risk taking

• Profits are a reward that employees receive for producing products

• Profit is the reward business owners receive for assuming the risks of ownership

• Profit is what remains after all business expenses have been deducted from sales revenue

What is the person who risks their time, energy and money to start a business called?

• A financier

• An employer

• An innovator

• An entrepreneur

• A sucker

Which of the following would be an example of a business in the secondary industry?

• Zenon Mining

• Heritage Motel

• Canberra Legal Centre

• Plastics Manufacturing LTD

Which business entity is owned and operated by more than two people and has unlimited liability?

• Sole Trader

• Partnership

• Public Company

• Private Company

In which phase of the business life cycle does complacency amongst management occur?

• Establishment

• Growth

• Maturity

• Post-maturity

What does the business environment refer to?

• The surrounding conditions in which the business operates

• Those factors over which the business has very little control

• Those factors over which the business has some degree of control

• A group who has an interest in or is affected by the activities of the business

What types of business would National Foods Limited most likely be?

• A partnership

• A public company

• A private company

• A government business enterprise

Which of the following is false in relation to why businesses are important to the Australian economy?

• They provide employment for millions of people

• They contribute to Australia's gross domestic product

• They provide goods and services to satisfy consumer wants

• They import products, which generates income for Australians

Which piece of legislation is designed to protect the interests of both consumers and business?

• Small Business Act

• Consumer Affairs Act

• Competition and Consumer Act

• Broadcasting and Television Act

Georgia has a hairdressing salon that employs 18 staff. Which of the following is an accurate classification of the business?

• A small business in the tertiary sector

• A small business in the quinary sector

• A medium business in the secondary sector

• A medium business in the quaternary sector