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Questions and Answers
Enterprise refers to the action of showing initiatives to take risk to start up a business.
Enterprise refers to the action of showing initiatives to take risk to start up a business.
True
Branding is solely focused on the manufacturing process of a product.
Branding is solely focused on the manufacturing process of a product.
False
A multinational business has its head office in one nation and must operate in only one other country.
A multinational business has its head office in one nation and must operate in only one other country.
False
An intrapreneur is an employee who takes responsibility for innovating within an existing business.
An intrapreneur is an employee who takes responsibility for innovating within an existing business.
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A business plan includes financial forecasts and market descriptions.
A business plan includes financial forecasts and market descriptions.
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Primary sector business activities involve firms that manufacture products from natural resources.
Primary sector business activities involve firms that manufacture products from natural resources.
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The tertiary sector includes businesses providing services such as banking and transport.
The tertiary sector includes businesses providing services such as banking and transport.
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Quaternary sector business activity is limited to farming and fishing.
Quaternary sector business activity is limited to farming and fishing.
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The public sector consists of organizations that are controlled by private entrepreneurs.
The public sector consists of organizations that are controlled by private entrepreneurs.
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The ______ sector comprises businesses owned and controlled by individuals or groups of individuals.
The ______ sector comprises businesses owned and controlled by individuals or groups of individuals.
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In a ______ economy, economic resources are owned and controlled by both private and public sectors.
In a ______ economy, economic resources are owned and controlled by both private and public sectors.
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A ______ economy is characterized by economic resources being largely owned by the private sector with minimal state intervention.
A ______ economy is characterized by economic resources being largely owned by the private sector with minimal state intervention.
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In a ______ economy, the state owns, plans, and controls economic resources.
In a ______ economy, the state owns, plans, and controls economic resources.
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A ______ trader is a business where one person has full control and can keep all profits from the business.
A ______ trader is a business where one person has full control and can keep all profits from the business.
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A ______ is formed by two or more people who share capital investment and responsibilities in a business.
A ______ is formed by two or more people who share capital investment and responsibilities in a business.
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Limited liability means that a shareholder's potential loss is limited to the amount invested in the ______.
Limited liability means that a shareholder's potential loss is limited to the amount invested in the ______.
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An ______ liability indicates that business owners are fully responsible for the debts of the business.
An ______ liability indicates that business owners are fully responsible for the debts of the business.
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A private limited company cannot sell shares to the ______ public.
A private limited company cannot sell shares to the ______ public.
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Study Notes
Entrepreneurship and Business Concepts
- Enterprise: Involves taking risks and showing initiative to start and manage a business.
- Branding: Essential for market differentiation; creates a unique identity for products through symbols, names, images, or trademarks.
Types of Business Structures
- Multinational Corporation (MNC): A firm with a headquarters in one country, operating branches or factories globally.
- Intrapreneur: An employee who drives innovation within a company, transforming ideas into profitable ventures.
Business Planning
- Business Plan: A crucial document outlining a business's objectives, strategies, financial projections, and target market.
Business Activities by Sector
- Primary Sector: Involves industries that extract natural resources, such as agriculture, fishing, and oil extraction, to supply other sectors.
- Secondary Sector: Focuses on manufacturing and processing based on natural resources, including technology, food production, and construction.
- Tertiary Sector: Offers services rather than goods, covering retail, transportation, banking, hospitality, and telecommunications.
- Quaternary Sector: Concentrates on information-related services, including research and development, IT, web design, and management consulting.
Public Sector
- Public Sector: Comprises organizations under the control of governmental bodies, accountable to the public through local or central governance.
Private Sector
- Comprises businesses owned and managed by individuals or private groups, reflecting a non-governmental approach to economic activities.
Mixed Economy
- Features a combination of ownership and control by both private and public sectors, leading to a blend of market-driven and state-regulated economic components.
Free-Market Economy
- Characterized by minimal state intervention with resources predominantly owned by the private sector, promoting competition and consumer choice.
Command Economy
- Economic resources are wholly owned and managed by the state, with centralized planning dictating production and distribution decisions.
Sole Trader
- A business model where one individual provides the necessary funding and governs the business entirely, entitled to all profits generated.
Partnership
- Formed by two or more individuals who collaborate to manage a business, sharing both financial contributions and operational responsibilities.
Limited Liability
- Protects shareholders by limiting their liability to the amount invested in the company, safeguarding personal assets in case of business failure.
Unlimited Liability
- Business founders assume complete legal responsibility for debts, exposing their personal assets to risk if the business incurs losses.
Private Limited Company
- A small to medium-sized entity owned by shareholders, often linked by family ties; shares cannot be publicly traded, providing a controlled ownership structure.
Share
- A legal document signifying ownership in a company, granting the shareholder entitlement to dividends and participation in company decisions.
Shareholder
- An individual or organization that owns shares in a limited company, entitled to rights associated with ownership, including dividends.
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Description
Test your knowledge on fundamental business concepts like enterprise, branding, multinational corporations, and intrapreneurship. This quiz will challenge you on key definitions and the roles these concepts play in the business world. It's perfect for students and professionals looking to refresh their understanding.
