What are corporate aims?

the long-term goals a business hopes to achieve

Which of the following is not a characteristic of a limited company?

Death of owner usually results in dissolution of business

All of the following are generally considered to be benefits of corporate aims except

They provide detailed working objectives for the business

A mission statement is

an outline of the overall purpose of a business

A multinational corporation, such as Coca-Cola, is best defined as a business that

has its HQ in one country, but operates in other countries

Which of the following statements applies to a public limited company?

There is a greater risk of takeover due to shares being sold

A franchise is defined as a business that:

uses the name, logo and systems of an existing business

Why is there often a conflict between the objectives of short-term profit and growth?

Growth may require increased expenditure on promotion

A consequence of having limited liability is that

owners are responsible only for amount they have invested

Which of the following is not a characteristic of a sole-trader business?

The business has a separate legal identity

An entrepreneur is someone who:

takes the risk of starting and managing a business venture

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11 1.1 Types of Business/Entrepreneurship/Business Objectives

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Answers

1
What are corporate aims?
the long-term goals a business hopes to achieve
a statement of the business’s mission
specific short-term goals of the business
departmental objectives
2
Which of the following is not a characteristic of a limited company?
Death of owner usually results in dissolution of business
Owners have limited liability
It is owned by shareholders
The company has a separate legal identity
3
Which is the most likely motivation for a private limited co. converting to public limited co.?
to increase the divorce between ownership and control
to benefit from limited liability
to benefit from government financial support
to raise capital
4
All of the following are generally considered to be benefits of corporate aims except
They help develop a sense of purpose within an organisation
They are the starting point for setting business objectives
They provide detailed working objectives for the business
They allow an assessment to be made of a business’s success
5
Which of the following is least likely to be an objective of a public-sector organisation?
providing a high-quality service
maximising profit
providing a public service
meeting the needs of stakeholders
6
Which of the following is not a form of legal structure for a business?
public limited company
private limited company
partnership
franchise
7
What is most likely to be the main difficulty for entrepreneurs when starting a new business?
marketing
identifying a market need
finance
finding suitable employees
8
A mission statement is
a description of the marketing strategy of the business
a statement of the specific objectives of a business
an outline of the overall purpose of a business
the financial plan of the business
9
A multinational corporation, such as Coca-Cola, is best defined as a business that
is very large
has its HQ in one country, but operates in other countries
employs people from a variety of ethnic backgrounds
sells its goods or services in more than one country
10
Which of the following statements applies to a public limited company?
Shareholders have unlimited liability
There is a greater risk of takeover due to shares being sold
It is owned by the state
It is in the public sector
11
A franchise is defined as a business that:
owns and controls a number of separate businesses
exists to promote the interests of its workers
is a joint venture between two or more businesses
uses the name, logo and systems of an existing business
12
What does the M in SMART stand for?
meaningful
motivational
measurable
marketing
13
Which of the SWOT are considered external factors?
Opportunity
Strength
Threat
Weakness
14
Which of the following is not a likely characteristic of a successful entrepreneur?
innovative
risk-averse
willing to take risks
committed and self-motivated
15
Why is there often a conflict between the objectives of short-term profit and growth?
Growth may require increased expenditure on promotion
Short-term profit requires an efficient use of its resources
Dividends have to be paid to shareholders
Larger businesses may experience diseconomies of scale
16
Business enterprise is claimed to bring all of the benefits to an economy with the exception of
economic growth
creation of employment
a more dynamic and innovative economy
a reduction in competition
17
A consequence of having limited liability is that
owners risk not just money invested but also personal wealth
owners have no control over their business
investing in business is free of risk
owners are responsible only for amount they have invested
18
Which of the following is not a characteristic of a sole-trader business?
There is a single owner of the business
The business has a separate legal identity
The owner has unlimited liability
The owner is able to keep all of the profits
19
Which of the following is the most likely corporate objective of a new business?
corporate social responsibility
maximising short-term sales revenue
profit maximisation
survival
20
An entrepreneur is someone who:
works for the government to provide public services
is an employee of a business enterprise
just provides capital to a business start-up
takes the risk of starting and managing a business venture

11 1.1 Types of Business/Entrepreneurship/Business Objectives Flashcards | StudBud