L1 Small Business Characteristics

What is a small business?

• A business that employs 20 or more employees

• A business that employs 50 or more employees

• A business that employs under 20 employees

• A business that employs under 50 employees

What are the factors of production?

• Land, Labor, Capital, and Enterprise

• Goods, Services, Money, and Technology

• Supply, Demand, Price, and Profit

• Marketing, Sales, Advertising, and Promotion

What is the primary sector of the economy?

• The sector that involves providing personal, financial, and commercial services

• The sector that involves the collection or extraction of natural resources

• The sector that involves converting resources into manufactured goods

• The sector that involves the transfer and processing of information and knowledge

What is the quaternary industry?

• The industry that involves the transfer and processing of information and knowledge

• The industry that involves the collection or extraction of natural resources

• The industry that involves converting resources into manufactured goods

• The industry that involves providing personal, financial, and commercial services

What is the public sector?

• Businesses owned by individuals or groups of individuals

• Businesses owned by central or local government providing essential services

• Businesses funded by donations, grants, and fundraising

• Businesses that provide goods and services to households

What is the aim of voluntary and not-for-profit businesses?

• To maximize returns for their owners or shareholders

• To provide goods and services not supplied by firms or the government

• To combine factors of production to produce goods and services

• To provide employment, innovation, and improvements to the quality of life

What is the importance of small and medium-sized enterprises (SMEs) in the New Zealand economy?

• They make up the majority of businesses and are the backbone of the economy

• They employ the highest number of workers in New Zealand

• They are more productive and successful in international markets

• They pay higher wages and enjoy higher profits

What is the tertiary sector of the economy?

• The sector that involves providing personal, financial, and commercial services

• The sector that involves the collection or extraction of natural resources

• The sector that involves converting resources into manufactured goods

• The sector that involves the transfer and processing of information and knowledge

What are merit goods?

• Goods and services provided by the public sector

• Goods and services provided by the private sector

• Goods and services that benefit society and are subsidized by the government

• Goods and services that are essential for daily lives

What is the role of the business community in New Zealand?

• To provide employment, innovation, and improvements to the quality of life

• To collect and extract natural resources

• To convert resources into manufactured goods

• To provide personal, financial, and commercial services