tq4 ch01.01 Introduction to Business Quiz

What are the two main types of organisations?

• Commercial and Not-for-profit

• Government and NGOs

• Public and Private

• Profit and Non-profit

What is the purpose of not-for-profit organisations?

• To increase the wealth of owners

• To provide a benefit to the public

• To maximize shareholder value

• To generate revenue for shareholders

What is the main difference between commercial organisations and not-for-profit organisations?

• Management style

• Funding sources

• Purpose of existence

• Ownership structure

What are the 3 elements of value for money (VFM) in not-for-profit organisations?

• Innovation, Marketing, Sales

• Profitability, Growth, Sustainability

• Economy, Efficiency, Effectiveness

• Quality, Quantity, Price

What is the main characteristic of businesses?

• Exist to make profits

• Exist to maximize donations

• Exist to provide free services

• Exist to benefit the government

Which is not a type of business entity mentioned in the text?

• Sole proprietorship

• Limited liability partnership

• Non-governmental organization

• Company

What is a key disadvantage of a sole proprietorship?

• Limited liability

• High workload for the owner

• Ease of start-up

• Flexibility of purpose

What is a key advantage of a partnership?

• Personal liability for losses

• Losses are shared with other partners

• Ease of growth

• Limited regulation

What is a key feature of a limited liability partnership (LLP)?

• Unlimited liability for partners

• Personal liability for all partners

• Taxed as a corporation

• No legal distinction between partners

What is the main advantage of a company as a business entity?

• Personal liability for shareholders

• Limited capital raising options

• Separation of ownership from control

• High level of regulation