Understanding Business and Economy Sectors

Which of the following is a feature of a sole trader business?

• Owned by shareholders

• Owned and run by one person

• Owned by the government

• Owned by two or more partners

What is the main advantage of a partnership over a sole trader?

• Unlimited liability

• More owners to share responsibility and skills

• Owned by the public

• No need to pay tax

Which type of business is owned by shareholders but does not sell shares to the public?

• Sole trader

• Partnership

• Private limited company (Ltd)

• Public limited company (PLC)

Which sector of the economy includes businesses like Tesco and Marks & Spencer?

• Public sector

• Private sector

• Third sector

• Social enterprise

Which of the following is an example of a public sector organisation?

• Sainsbury’s

• NHS (National Health Service)

• Oxfam

• John Lewis

What is the main aim of a social enterprise?

• To maximise profit for owners

• To benefit society and reinvest profits

• To provide government services

• To avoid paying tax

Which of the following is NOT a stakeholder in a business?

• Employees

• Customers

• Weather

• Suppliers

Which sector of the economy is responsible for extracting raw materials?

• Primary sector

• Secondary sector

• Tertiary sector

• Quaternary sector

What is the main objective of most private sector businesses?

• To provide public services

• To make a profit

• To help charities

• To create laws

Which of the following is an external factor that can affect a business?

• Staff training

• Changes in government laws

• Company logo design

• Office layout