Business Management 2026-2027 Exam
Questions with Correct Answers
Business - CORRECT ANSWER -
Is an organisation that provides goods and/or services to consumers in order to make a profit.
Profit - CORRECT ANSWER -
Is achieved when the income earned (revenue) is greater than the costs of production (expenses).
Types of Organisations - CORRECT ANSWER -For-Profit and Non-For-Profit
For-Profit Organisation - CORRECT ANSWER -
The objective is to make a profit. This type of organisation can be owned by a single owner, a group of
owners or shareholders.
Non-For-Profit Organisation - CORRECT ANSWER -
In this organisation, their objective is to achieve a social mission. Many of theses types of organisations
help people in need of food, shelter, medical attention or financial assistance. Generally, they raise get
money by using fundraisers or other methods of getting money from the public. They are not owned by
anyone apart from the organisations stakeholders.
Market Share - CORRECT ANSWER -
The business's share of the total industry sales for a particular product
Multinational Corporation - CORRECT ANSWER -
AAcompany that has branches in many different countries.
Sole Trader - CORRECT ANSWER -
A business that is owned and run by one person who gets all the profits.
Small Sized Business - CORRECT ANSWER -
Less than 20 employees. Independently owned and operated. The market share is small, usually local ar
ea; not dominant in the industry. Set up as a sole trader, or partnership. Owner/s responsible for majori
ty of decisions; simple and quick implementation of decisions. Owner has access to finance (usually fro
m own savings or a loan); difficulty in accessing loans.
, Medium Sized Business - CORRECT ANSWER -
Between 20 and 199 employees. Owned and operated by a few people and/or private shareholders. Th
e market share is medium-
sized, due to dominance within a geographic region; some market dominance. Generally set up as a par
tnership or private company. Owner is responsible for majority of decisions; more complicated decision
making with slower implementation, due to influence of directors. Finance comes from the owners an
d partners personal savings or a loan and/or private shareholders; easier accessibility to larger loans.
Large Sized Business - CORRECT ANSWER -
Has 200 or more employees. Owned usually by thousands of public shareholders. Large market share, e
specially for multinational corporations that dominate the markets of many countries. Most often a pub
lic company. Complex decision making, due to division of responsibilities among directors, senior and m
iddle management; possibly slow implementation of decisions, due to the layersAof management . Has
a board and CEO. Finance comes from many sources, including cash reserves, retained profit, sale of sh
ares, and loans from domestic and overseas institutions.
Objective - CORRECT ANSWER -States what an organisation expects to achieve over a set period
Return on Investment - CORRECT ANSWER -
Is a positive or negative percentage that relates the money gained or lost on an investment to the cost
of that investment. It is usually taken to mean that the return on the investment occurs over a 12-
month period.
Personal Objectives e.g. - CORRECT ANSWER -
Become a known business, make a profit, get rich, enjoy work, create an enjoyable working environme
nt
Economy - CORRECT ANSWER -
Is a system set up to determine what to produce, how to produce and to whom production will be distr
ibuted.
Economic Growth - CORRECT ANSWER -
Occurs when the real value of goods and services increases over a set period of time
Questions with Correct Answers
Business - CORRECT ANSWER -
Is an organisation that provides goods and/or services to consumers in order to make a profit.
Profit - CORRECT ANSWER -
Is achieved when the income earned (revenue) is greater than the costs of production (expenses).
Types of Organisations - CORRECT ANSWER -For-Profit and Non-For-Profit
For-Profit Organisation - CORRECT ANSWER -
The objective is to make a profit. This type of organisation can be owned by a single owner, a group of
owners or shareholders.
Non-For-Profit Organisation - CORRECT ANSWER -
In this organisation, their objective is to achieve a social mission. Many of theses types of organisations
help people in need of food, shelter, medical attention or financial assistance. Generally, they raise get
money by using fundraisers or other methods of getting money from the public. They are not owned by
anyone apart from the organisations stakeholders.
Market Share - CORRECT ANSWER -
The business's share of the total industry sales for a particular product
Multinational Corporation - CORRECT ANSWER -
AAcompany that has branches in many different countries.
Sole Trader - CORRECT ANSWER -
A business that is owned and run by one person who gets all the profits.
Small Sized Business - CORRECT ANSWER -
Less than 20 employees. Independently owned and operated. The market share is small, usually local ar
ea; not dominant in the industry. Set up as a sole trader, or partnership. Owner/s responsible for majori
ty of decisions; simple and quick implementation of decisions. Owner has access to finance (usually fro
m own savings or a loan); difficulty in accessing loans.
, Medium Sized Business - CORRECT ANSWER -
Between 20 and 199 employees. Owned and operated by a few people and/or private shareholders. Th
e market share is medium-
sized, due to dominance within a geographic region; some market dominance. Generally set up as a par
tnership or private company. Owner is responsible for majority of decisions; more complicated decision
making with slower implementation, due to influence of directors. Finance comes from the owners an
d partners personal savings or a loan and/or private shareholders; easier accessibility to larger loans.
Large Sized Business - CORRECT ANSWER -
Has 200 or more employees. Owned usually by thousands of public shareholders. Large market share, e
specially for multinational corporations that dominate the markets of many countries. Most often a pub
lic company. Complex decision making, due to division of responsibilities among directors, senior and m
iddle management; possibly slow implementation of decisions, due to the layersAof management . Has
a board and CEO. Finance comes from many sources, including cash reserves, retained profit, sale of sh
ares, and loans from domestic and overseas institutions.
Objective - CORRECT ANSWER -States what an organisation expects to achieve over a set period
Return on Investment - CORRECT ANSWER -
Is a positive or negative percentage that relates the money gained or lost on an investment to the cost
of that investment. It is usually taken to mean that the return on the investment occurs over a 12-
month period.
Personal Objectives e.g. - CORRECT ANSWER -
Become a known business, make a profit, get rich, enjoy work, create an enjoyable working environme
nt
Economy - CORRECT ANSWER -
Is a system set up to determine what to produce, how to produce and to whom production will be distr
ibuted.
Economic Growth - CORRECT ANSWER -
Occurs when the real value of goods and services increases over a set period of time
