Business Management Unit 1 Exam Questions
with Correct Answers 2026-2027
Partnership - CORRECT ANSWER -
An unincorporated legal business structure with a minimum of two and a maximum of 20 owners
Small Business Characteristics - CORRECT ANSWER -
Has less than 20 employees, Independently owned and operated by usually one or two people
For-Profit Organisation - CORRECT ANSWER -Main objective is to make a profit
Not-For-Profit Organisation - CORRECT ANSWER -Main objective is to achieve a social mission
Importance of Business Planning - CORRECT ANSWER -
To ensure the business suits you and your customers and that you consider all of the time, energy and
money that will go into running the business. Shows the probability of success and important for seekin
g finance from a lender
Business Location - CORRECT ANSWER -Shopping centres, retail shoppingRstrips, online presence, home-
based -
factors affecting this include visibility, cost, proximity to customers and suppliers, proximity to competit
ors, complementary businesses
KPI - Key Performance Indicator - CORRECT ANSWER -
A way of measuring the success of a business or organisation. There are two types: financial and non-
financial
Profitability - CORRECT ANSWER -The quality of affording gain or benefit or profit
Contribution of small business to the economy - CORRECT ANSWER -
Taxation revenue, economic growth, export earnings,
External Macro Environment - CORRECT ANSWER -PELTS -
Political, Economic, Legal, Technological, Social
with Correct Answers 2026-2027
Partnership - CORRECT ANSWER -
An unincorporated legal business structure with a minimum of two and a maximum of 20 owners
Small Business Characteristics - CORRECT ANSWER -
Has less than 20 employees, Independently owned and operated by usually one or two people
For-Profit Organisation - CORRECT ANSWER -Main objective is to make a profit
Not-For-Profit Organisation - CORRECT ANSWER -Main objective is to achieve a social mission
Importance of Business Planning - CORRECT ANSWER -
To ensure the business suits you and your customers and that you consider all of the time, energy and
money that will go into running the business. Shows the probability of success and important for seekin
g finance from a lender
Business Location - CORRECT ANSWER -Shopping centres, retail shoppingRstrips, online presence, home-
based -
factors affecting this include visibility, cost, proximity to customers and suppliers, proximity to competit
ors, complementary businesses
KPI - Key Performance Indicator - CORRECT ANSWER -
A way of measuring the success of a business or organisation. There are two types: financial and non-
financial
Profitability - CORRECT ANSWER -The quality of affording gain or benefit or profit
Contribution of small business to the economy - CORRECT ANSWER -
Taxation revenue, economic growth, export earnings,
External Macro Environment - CORRECT ANSWER -PELTS -
Political, Economic, Legal, Technological, Social
