Understanding Business Environments and Structures

What is the primary focus of the internal business environment?

• External market trends

• Internal resources and capabilities

• Government regulations

• Competitor analysis

Which of the following is NOT a component of the external operating environment?

• Customers

• Suppliers

• Company culture

• Competitors

What is a key characteristic of a sole trader?

• Limited liability

• Shared decision-making

• Full control over business decisions

• Ability to issue shares

Which of the following is an advantage of a partnership?

• Unlimited liability

• Shared responsibility

• Complex decision-making process

• High start-up costs

What is a disadvantage of a partnership?

• Limited liability

• Shared profits

• Easier access to capital

• Sole decision-making

Which of the following is a characteristic of a private company?

• Shares traded on the stock exchange

• Limited number of shareholders

• Unlimited liability

• No legal identity separate from owners

What is a key difference between public and private companies?

• Public companies have unlimited liability

• Private companies can issue shares to the public

• Public companies are listed on the stock exchange

• Private companies have more than 50 shareholders

Which of the following is a type of business structure?

• Sole trader

• Government department

• Non-profit organisation

• Community group

What is a characteristic of a government business enterprise (GBE)?

• Operates for profit

• Funded by donations

• No government involvement

• Unlimited liability

Which of the following is a feature of a government-owned corporation (GOC)?

• Privately funded

• Operates independently of government

• Provides essential services

• Unlimited liability