Business Activities Overview

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Questions and Answers

What is a primary characteristic that distinguishes a public company from a private company?

Private companies must disclose their financial statements publicly.

Private companies have no liability for their debts.

Public companies are managed by a single individual.

Public companies can raise funds from the general public. (correct)

Which of the following is NOT a step in the formation of a company?

Obtaining a Certificate of Incorporation

Submitting Memorandum of Association

Surveying the market (correct)

Drafting Articles of Association

What is a disadvantage of a co-operative society?

No provisions for mutual benefit

Difficulties in raising capital (correct)

Centralized control over operations

Limited liability for members

What does a departmental undertaking represent in the context of public sector enterprises?

A government operation that generates revenue Signup and view all the answers

Which process is included in international trade procedures for exporting goods?

Securing payment Signup and view all the answers

Which type of retailer is characterized by a wide range of products and a larger scale of operation?

Departmental store Signup and view all the answers

Which of the following is NOT a function of wholesalers?

Selling directly to consumers Signup and view all the answers

What factor differentiates global enterprises from local businesses?

Presence in multiple countries Signup and view all the answers

What defines non-economic activities?

Activities undertaken for mental satisfaction Signup and view all the answers

Which of the following is not a characteristic of human activities?

They are always financially rewarding Signup and view all the answers

What is the primary objective of economic activities?

To earn income in the form of profit Signup and view all the answers

Which of the following best categorizes employees in a company?

Employees Signup and view all the answers

What is an example of a non-economic activity?

Volunteering at a local charity Signup and view all the answers

What are the three broad categories of economic activities?

Business, Profession, Employment Signup and view all the answers

Which of the following describes the role of a businessman?

Operates a venture aimed at profit-making Signup and view all the answers

Which type of activity is primarily related to the consumption of goods and services?

Economic Activities Signup and view all the answers

What are the two broad categories of business activities?

Industry and Commerce Signup and view all the answers

Which of the following best describes Industry?

Production of goods and services Signup and view all the answers

Which term is used for the activities related to the distribution of goods?

Commerce Signup and view all the answers

What is NOT a characteristic of economic activities?

Non-economic in nature Signup and view all the answers

How can business activities be divided fundamentally?

By industry and commerce Signup and view all the answers

What is the primary objective of a business?

To earn profits Signup and view all the answers

How does business mitigate the element of risk and uncertainty?

By diversifying product lines Signup and view all the answers

Which of the following best describes the element of 'creation of utilities' in business?

Adding convenience to goods through various utilities Signup and view all the answers

What role does finance play in business?

It is needed for both fixed and working capital Signup and view all the answers

Why is organization important for a business?

It provides a framework for smooth functioning Signup and view all the answers

In what way does business aim to satisfy social needs?

By serving public purposes and gaining public support Signup and view all the answers

What does it mean to consider business as both an art and a science?

It combines creativity with analytical skills Signup and view all the answers

What is a consequence of not satisfying consumer needs in a business?

Decreased existence and expansion potential Signup and view all the answers

What is the primary focus of the production function in a business?

Transforming inputs into outputs required by society Signup and view all the answers

Which of the following is NOT one of the components of the marketing function known as the 4Ps?

Process Signup and view all the answers

Why is finance considered the 'lifeblood' of a business?

It ensures the smooth functioning and growth of the business Signup and view all the answers

What role does the marketing function play in a business?

Transferring goods and services from producers to consumers Signup and view all the answers

Which function of business focuses on the management of people?

Personnel Function Signup and view all the answers

What does the marketing function include aside from the 4Ps?

Market research and transportation Signup and view all the answers

What is one of the essential needs for the finance function in a business?

Bringing the business into existence Signup and view all the answers

Which statement best describes mass production as a function of business?

It allows consumers to benefit from large scale operations. Signup and view all the answers

Study Notes