BUSINESS FOUNDATIONS FINAL PAPER
EXAM 2026 PRACTICE SOLUTION TESTED
QUESTIONS AND ANSWERS GRADED A+
●● Partnership. Answer: A business owned by two to 20 people who
share profits, responsibilities and unlimited liability.
●● Private Limited Company (Pty Ltd). Answer: A business owned by
shareholders with limited liability, where shares are privately held and
cannot be sold to the public without the approval of the existing
shareholders.
●● Public Listed Company (Ltd). Answer: A company that sells shares
to the general public through the ASX - Australian Securities Exchange.
Shareholders have limited liability and paid profits through dividends.
●● Social Enterprise. Answer: A business that undertakes commercial
activity to generate revenue, and gives away a minimum of 50% of all
profits generated to further/advance progress towards/contribute to a
social or environmental objective.
●● Government Business Enterprise (GBE). Answer: A government-
owned organisation that operates in a commercial manner to provide
goods or services.
, ●● Limited Liability. Answer: Refers to the separation of liability
between the owners and the business.
●● Unlimited Liability. Answer: The owner(s) are responsible for the
debts and legal costs of the business.
●● Business Objectives. Answer: Objective sets out what a business
aims to achieve.
●● To Make a Profit. Answer: To earn more revenue than expenses over
a period of time.
●● To Increase Market Share. Answer: To increase the percentage of
total sales within an industry that the business controls, relative to the
amount of sales made by competitors within the same market.
●● To Improve Efficiency. Answer: To reduce costs or waste in order to
maximise output from inputs by making the best use of resources.
●● To Improve Effectiveness. Answer: Extent to which the business
achieves its stated objectives.
EXAM 2026 PRACTICE SOLUTION TESTED
QUESTIONS AND ANSWERS GRADED A+
●● Partnership. Answer: A business owned by two to 20 people who
share profits, responsibilities and unlimited liability.
●● Private Limited Company (Pty Ltd). Answer: A business owned by
shareholders with limited liability, where shares are privately held and
cannot be sold to the public without the approval of the existing
shareholders.
●● Public Listed Company (Ltd). Answer: A company that sells shares
to the general public through the ASX - Australian Securities Exchange.
Shareholders have limited liability and paid profits through dividends.
●● Social Enterprise. Answer: A business that undertakes commercial
activity to generate revenue, and gives away a minimum of 50% of all
profits generated to further/advance progress towards/contribute to a
social or environmental objective.
●● Government Business Enterprise (GBE). Answer: A government-
owned organisation that operates in a commercial manner to provide
goods or services.
, ●● Limited Liability. Answer: Refers to the separation of liability
between the owners and the business.
●● Unlimited Liability. Answer: The owner(s) are responsible for the
debts and legal costs of the business.
●● Business Objectives. Answer: Objective sets out what a business
aims to achieve.
●● To Make a Profit. Answer: To earn more revenue than expenses over
a period of time.
●● To Increase Market Share. Answer: To increase the percentage of
total sales within an industry that the business controls, relative to the
amount of sales made by competitors within the same market.
●● To Improve Efficiency. Answer: To reduce costs or waste in order to
maximise output from inputs by making the best use of resources.
●● To Improve Effectiveness. Answer: Extent to which the business
achieves its stated objectives.
