Business Legal Forms Quiz
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Questions and Answers

What is the main purpose of setting up a business?

  • To create job opportunities
  • To provide goods and services to the community
  • To generate income and make a profit (correct)
  • To contribute to economic growth
  • Why might a business need to raise finance?

  • To pay salaries and wages
  • To provide free services to customers
  • To purchase premises, equipment, and stock (correct)
  • To cover marketing and advertising expenses
  • What is likely to happen once a business has made a profit?

  • A proportion of the profit is given to the owners (correct)
  • The profit is donated to charity
  • All profit is reinvested in the business
  • The profit is distributed among competitors
  • What are some reasons a business might need to raise finance?

    <p>To expand, acquire other businesses, and invest in new premises and equipment</p> Signup and view all the answers

    What is the primary way a business generates income?

    <p>By selling products and/or services</p> Signup and view all the answers

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