BUSINESS FOUNDATIONS
COMPREHENSIVE EXAMINATION TEST
2026 VERIFIED QUESTIONS AND ANSWERS
GRADED A+
●● unlimited liability. Answer: Means that the business owner is
personally responsible for all the debts of his/her business.
●● Incorporation. Answer: The process that businesses go through to
become a registered company and a separate legal entity.
●● Sole trader. Answer: A business is a business owned and operated by
one person.
●● Partnership. Answer: A business owned by a minimum of two and a
maximum of 20 people.
●● Private limited company. Answer: An incorporated business with a
minimum of two, and a maximum of 50 private shareholders, and whose
shares are offered only to those people whom the business wishes to
have as part owners.
, ●● Public listed company. Answer: An incorporated business with a
minimum of five shareholders, and whose shares are freely traded on the
Australian Securities Exchange.
●● Social enterprise. Answer: A business with the objective of fulfilling
a social need.
●● Government business enterprise. Answer: A type of business that is
government owned and operated which aims to make a profit.
●● Profit. Answer: What is left after business expenses have been
deducted from money earned from revenue (money earned from the sale
of goods/services)
●● Market share. Answer: The proportion of total sales in a given
market or industry that is controlled or held by a business, calculated for
a specific period of time.
●● Market need. Answer: A gap in the offering of other organisations in
their industry where a business can make a commercial gain. Such as
providing a good or service which would otherwise not be available.
●● Social need. Answer: A community or environmental issue which
requires improvement. Such as improving health and sanitation in rural
communities.
COMPREHENSIVE EXAMINATION TEST
2026 VERIFIED QUESTIONS AND ANSWERS
GRADED A+
●● unlimited liability. Answer: Means that the business owner is
personally responsible for all the debts of his/her business.
●● Incorporation. Answer: The process that businesses go through to
become a registered company and a separate legal entity.
●● Sole trader. Answer: A business is a business owned and operated by
one person.
●● Partnership. Answer: A business owned by a minimum of two and a
maximum of 20 people.
●● Private limited company. Answer: An incorporated business with a
minimum of two, and a maximum of 50 private shareholders, and whose
shares are offered only to those people whom the business wishes to
have as part owners.
, ●● Public listed company. Answer: An incorporated business with a
minimum of five shareholders, and whose shares are freely traded on the
Australian Securities Exchange.
●● Social enterprise. Answer: A business with the objective of fulfilling
a social need.
●● Government business enterprise. Answer: A type of business that is
government owned and operated which aims to make a profit.
●● Profit. Answer: What is left after business expenses have been
deducted from money earned from revenue (money earned from the sale
of goods/services)
●● Market share. Answer: The proportion of total sales in a given
market or industry that is controlled or held by a business, calculated for
a specific period of time.
●● Market need. Answer: A gap in the offering of other organisations in
their industry where a business can make a commercial gain. Such as
providing a good or service which would otherwise not be available.
●● Social need. Answer: A community or environmental issue which
requires improvement. Such as improving health and sanitation in rural
communities.
