Business Management 2026-2027 Exam
Revision Questions with Correct Answers
types of businesses including sole traders, partnerships, private limited companies, public listed compa
nies, social enterprises and government business enterprises - CORRECT ANSWER -sole trader-
A business owned and operated by one person
AD- Complete control, No partner disputes, Low cost of entry
DISAD-
Unlimited liability (owners responsibility) for business debts, Illness/holiday means hard to operate,
Difficulty raising finance for expansion
partnership- A business owned and operated by a minimum of 2 and a maximum of 20 people.
AD- Shares responsibility and workload, Business continues when a partner is ill, Less costly to operate
DISAD- Unlimited liability, Liability for partners' debts, Disputes between partners can occur
private listed company-
An incorporated business which has a minimum of 1 and a maximum of 50 shareholders, whose shares
are only offered privately to people who the business wishes to have as owners.
AD-
Limited Liability (responsible for debts incurred only to extent of their investment), Growth potential, E
asier to raise capital
DISAD- Complex and expensive to establish, Too much growth may result in inefficiencies
public listed company-
An incorporated business with an unlimited amount of shareholders, whose shares are freely traded o
n the Australian Securities Exchange.
AD-
Limited Liability (responsible for debts incurred only to extent of their investment), Growth potential, E
asier to raise capital
DISAD-
Public disclosure, Complex and expensive to establish, Too much growth may result in inefficiencies
social enterprise-
A business that produces goods and services with the objective of fulfilling a social need.
, AD-
Meeting a social need can encourage community support leading to an increase in profit, Improved mo
rale within the business as employees value the work
DISAD-
Difficulty obtaining capital to start business, Difficult to focus on both social and financial objectives
government business enterprises- A business that is government owned and operated.
A
business objectives including to make a profit, to increase market share, to fulfil a market and/or social
need and to meet shareholder expectations - CORRECT ANSWER -what are business objectives?
the broader aim of what a business is tryingAto achieve, giving the business direction.
Vision: What the business wants to become in the future
Mission: What the business stands for, it's purpose and how it will operate
To make a profit- Profit = Revenue - Expenses
Increase market share-
Market share: is the proportion of sales belonging to a business out the total sales in an industry, often
measured as a percentage.
To fulfil a market need-
A market is a specific group or industry that a business focuses on selling goods or services. There nee
ds to be a demand for it
To fulfil a social need- Social needs are focused on the community and how they can benefit others
To meet shareholder expectations-
shareholders have invested money into the company so expect a return on their investment through di
vidends and/or capital gains:
Revision Questions with Correct Answers
types of businesses including sole traders, partnerships, private limited companies, public listed compa
nies, social enterprises and government business enterprises - CORRECT ANSWER -sole trader-
A business owned and operated by one person
AD- Complete control, No partner disputes, Low cost of entry
DISAD-
Unlimited liability (owners responsibility) for business debts, Illness/holiday means hard to operate,
Difficulty raising finance for expansion
partnership- A business owned and operated by a minimum of 2 and a maximum of 20 people.
AD- Shares responsibility and workload, Business continues when a partner is ill, Less costly to operate
DISAD- Unlimited liability, Liability for partners' debts, Disputes between partners can occur
private listed company-
An incorporated business which has a minimum of 1 and a maximum of 50 shareholders, whose shares
are only offered privately to people who the business wishes to have as owners.
AD-
Limited Liability (responsible for debts incurred only to extent of their investment), Growth potential, E
asier to raise capital
DISAD- Complex and expensive to establish, Too much growth may result in inefficiencies
public listed company-
An incorporated business with an unlimited amount of shareholders, whose shares are freely traded o
n the Australian Securities Exchange.
AD-
Limited Liability (responsible for debts incurred only to extent of their investment), Growth potential, E
asier to raise capital
DISAD-
Public disclosure, Complex and expensive to establish, Too much growth may result in inefficiencies
social enterprise-
A business that produces goods and services with the objective of fulfilling a social need.
, AD-
Meeting a social need can encourage community support leading to an increase in profit, Improved mo
rale within the business as employees value the work
DISAD-
Difficulty obtaining capital to start business, Difficult to focus on both social and financial objectives
government business enterprises- A business that is government owned and operated.
A
business objectives including to make a profit, to increase market share, to fulfil a market and/or social
need and to meet shareholder expectations - CORRECT ANSWER -what are business objectives?
the broader aim of what a business is tryingAto achieve, giving the business direction.
Vision: What the business wants to become in the future
Mission: What the business stands for, it's purpose and how it will operate
To make a profit- Profit = Revenue - Expenses
Increase market share-
Market share: is the proportion of sales belonging to a business out the total sales in an industry, often
measured as a percentage.
To fulfil a market need-
A market is a specific group or industry that a business focuses on selling goods or services. There nee
ds to be a demand for it
To fulfil a social need- Social needs are focused on the community and how they can benefit others
To meet shareholder expectations-
shareholders have invested money into the company so expect a return on their investment through di
vidends and/or capital gains:
