17 Questions
What is the opportunity cost?
The benefit of the next most desired option which is given up.
Define added value.
The difference between the costs of purchasing bought-in materials and the price the finished goods are sold for.
Who is an entrepreneur?
Someone who takes the financial risk of starting and managing a new venture.
What are the three objectives of social enterprises according to the triple bottom line concept?
Economic, social, and environmental
Give an example of a business activity in the secondary sector.
Computers, brewing, baking, clothes-making, construction
What type of business activity does the tertiary sector comprise?
Services to consumers and other businesses
Define a mixed economy.
Economic resources are owned and controlled by both private and public sector
What is the main difference between a sole trader and a partnership?
Sole trader has one person providing finance and full control, while partnership involves two or more people with shared capital investment and responsibilities.
What is the key feature of limited liability in a company?
The shareholder's potential loss is limited to the amount invested in the company, not their total wealth.
What distinguishes a private limited company from a public limited company?
Private limited companies are owned by shareholders, often from the same family, and cannot sell shares to the general public. Public limited companies can sell shares to the general public.
What does a share entitle the shareholder to in a company?
A share entitles the shareholder to dividends and certain shareholder rights.
What information does the memorandum of association state about a company?
It states the company's name, head office address, maximum share capital, and declared aims of the business.
In a partnership, what is the significance of shared capital investment?
Partnership involves two or more people contributing capital to carry on the business together.
What are the characteristics of a public limited company?
A public limited company is often a large business with the legal right to sell shares to the general public, and its share prices are quoted on the national stock exchange.
What is the significance of full control in a sole trader business?
Full control in a sole trader business means the individual has complete authority over the business's decisions and operations.
How does limited liability protect shareholders in a company?
Limited liability protects shareholders by limiting their potential loss to the amount invested in the company.
What rights and benefits do shareholders have in a company?
Shareholders have the right to dividends and certain shareholder rights, such as voting and decision-making.
Test your knowledge on consumer goods, consumer services, and capital goods with this quiz. Learn about the physical and tangible goods sold to the general public, as well as non-tangible products such as insurance services and hotel accommodation. Understand the role of capital goods in aiding the production of other goods and services.
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