Prelim Revision Quiz

Which sector of economy is run by the government?

Private sector

Public sector

Third sector

• Private sector

• Public sector

• Third sector

Limited companies are found in which sector of economy?

• Private sector

• Public sector

• Third sector

How do public sector organisations raise finance?

• Bank loans

• Retained profits

• Taxation

Which sector is primarily driven by profit motives?

• Private sector

• Public sector

• Third sector

Non-profit organizations are typically part of which sector?

• Private sector

• Public sector

• Third sector

Which of the following is a disadvantage of being a sole trader?

• Unlimited liability

• Limited liability

• Dividends

When does organic growth occur?

When a company hires more staff

When a company merges with a rival

When a company takes over a rival

• When a company hires more staff

• When a company merges with a rival

• When a company takes over a rival

Why does a business benefit from growth?

It will have more competition

It will have more market power

It will have more overheads

• It will have more competition

• It will have more market power

• It will have more overheads

Which of the following is a benefit of being a sole trader?

• Full control over decisions

• Shared profits

• Unlimited liability

Which of the following are a benefit of Horizontal Integration

• It removes the competitor from the market

• It allows for greater economies of scale

• Can be expensive to purchase another company

• Less likely to be taken over