Consumer Goods and Services Quiz

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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 Signup and view all the answers

Give an example of a business activity in the secondary sector.

Computers, brewing, baking, clothes-making, construction Signup and view all the answers

What type of business activity does the tertiary sector comprise?

Services to consumers and other businesses Signup and view all the answers

Define a mixed economy.

Economic resources are owned and controlled by both private and public sector Signup and view all the answers

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. Signup and view all the answers

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. Signup and view all the answers

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. Signup and view all the answers

What does a share entitle the shareholder to in a company?

A share entitles the shareholder to dividends and certain shareholder rights. Signup and view all the answers

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. Signup and view all the answers

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. Signup and view all the answers

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. Signup and view all the answers

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. Signup and view all the answers