Which is a valid difference between public and private limited companies?
- Shareholders may receive dividends
- Shares can be bought and sold
- Owners have limited liability
- Share ownership is restricted
Which type of business organisation offers limited liability to its owners
- Sole trader
- Partnership
- Public limited company
- Freelance worker
Which is an example of external expansion?
- Opening a new store
- Increasing production capabilities
- Buying a competitor
- Opening an online store
What is a key feature of a sole trader business?
- Limited liability
- Separate legal entity
- Unlimited liability
- Perpetual succession
What is meant by a "business aim"?
- A specific target
- A positive net profit
- An overall direction of the business
- Improved revenue
What does the term "stakeholder" refer to in the context of business?
- A type of legal document
- A person or group that has an interest in the business
- A company's CEO
- A specific type of product
Which of the following is a common feature of a not-for-profit organisation?
- The primary goal is to maximise profits
- All staff are volunteers, so there are no wages to pay
- Surpluses are reinvested into the organisation's mission
- Not subject to any government regulations
What is a mission statement for a business?
- A document outlining the legal structure of the company
- A statement describing the company's long-term goals and purpose
- A financial statement detailing the company's profits and losses
- A marketing plan for a new product
Sarah sells glasses of lemonade for £2. Her fixed costs are £20 for the day, and her variable cost per glass is £1. What is her profit after selling 50 glasses of lemonade?
In which type of market structure does a single firm dominate the entire industry with no competitors?
- Perfect competition
- Monopolistic competition
- Oligopoly
- Monopoly
