IGCSE Business Unit 1 Business Activity

What does SMART stand for in business objectives?

• Specific, Measurable, Achievable, Realistic, Time-specific

• Specific, Measurable, Attainable, Realistic, Time-oriented

• Simple, Manageable, Achievable, Realistic, Timely

• Specific, Manageable, Achievable, Relevant, Time-bound

Which of the following is a financial objective?

• Providing employment opportunities

• Maximizing profit

• Improving community well-being

• Enhancing customer satisfaction

What is a key characteristic of a sole trader?

• Complex tax arrangements

• Unlimited liability

• Limited liability

• Shared ownership

What is a disadvantage of partnerships?

• Shared responsibilities

• Limited access to finance

• Potential for disputes

• Easy to set up

What is a public limited company (PLC)?

• A company owned by a single shareholder

• A company that sells shares publicly on the stock exchange

• A company with limited liability for its owners

• A company that operates in the public sector

Which of the following is a non-financial objective?

• Social responsibility

• Sales increase

• Market share growth

• Profit maximization

What is the primary focus of public corporations?

• Generating high sales revenue

• Competing in the market

• Providing public services

• Maximizing profit for shareholders

What is a common reason for business objectives to change?

• Increased employee satisfaction

• Changes in market conditions

• Higher profit margins

• Stable competition

What is a characteristic of small businesses?

• Employ more than 250 people

• Focus on international markets

• Have complex organizational structures

• Provide goods and services locally

What is a franchise?

• A government-owned business

• A business model where an individual buys rights to operate

• A type of partnership

• A public limited company