Business & Management Exam Questions And
Accurate Answers
Goods = physical/tangible products for example burgers and cars
Services = non tangible products for example hairdressing and legal advice
Tangible = Something you can touch
Physical Resources = Natural resources found on the planet.
Financial Resources = Access to money needed to set up, and then maintain/expand a
business. Loans, investments, savings, profits.
Primary Sectors- Answer Natural resources such as raw materials, oil, water, etc.
Secondary Sectors - Answer manufacturers, humans, construction, etc
Tertiary Sectors - Answer transportations, hospitals, entertainment, etc.
Quaternary Sectors - Answer Knowledge, Career/Occupation, IT, etc.
Wants - Answer Things that we would like to have but we don't need to survive. Holidays,
music, perfume.
A high % of businesses failing is because. - Answer businesses did not carry out a SWOT
and create a strategic plan
What is a business plan needed for? (internally) - Answer -help firms keep on track
, -allow staff to know what the business is trying to achieve
-provides direction for the future (goals)
-measuring success/ identifying failure
What is a business plan needed for? (externally) - Answer -attract investment to the
business
- bank loans
Limited Liability-Answer company has limited liabilty will not loose personal assets if the
business fails
Unlimited liability - Answer sole traders & partnerships owners are liable for the
liabilities of the business if it fails.
Sole Trader - Answer - 1 owner
A person owning and running a private business
Has unlimited liability
-makes all the decisions
Cannot easily take time off-no one else to do the job
Partnership - Solution - 2-20 owners
Specialisation- lawyers, doctors, architects, accountants
more people to make decisions and more potential for conflict with those decisions
ability to generate more profit
must share that profit with partners
Private Limited (Pty Ltd) - Solution - Limited Liability
Owners are called shareholders
Public not able to buy shares
Separate legal existence from owners
Public Limited - Owners are known as shareholders
Shares can be publicly purchased.
Accurate Answers
Goods = physical/tangible products for example burgers and cars
Services = non tangible products for example hairdressing and legal advice
Tangible = Something you can touch
Physical Resources = Natural resources found on the planet.
Financial Resources = Access to money needed to set up, and then maintain/expand a
business. Loans, investments, savings, profits.
Primary Sectors- Answer Natural resources such as raw materials, oil, water, etc.
Secondary Sectors - Answer manufacturers, humans, construction, etc
Tertiary Sectors - Answer transportations, hospitals, entertainment, etc.
Quaternary Sectors - Answer Knowledge, Career/Occupation, IT, etc.
Wants - Answer Things that we would like to have but we don't need to survive. Holidays,
music, perfume.
A high % of businesses failing is because. - Answer businesses did not carry out a SWOT
and create a strategic plan
What is a business plan needed for? (internally) - Answer -help firms keep on track
, -allow staff to know what the business is trying to achieve
-provides direction for the future (goals)
-measuring success/ identifying failure
What is a business plan needed for? (externally) - Answer -attract investment to the
business
- bank loans
Limited Liability-Answer company has limited liabilty will not loose personal assets if the
business fails
Unlimited liability - Answer sole traders & partnerships owners are liable for the
liabilities of the business if it fails.
Sole Trader - Answer - 1 owner
A person owning and running a private business
Has unlimited liability
-makes all the decisions
Cannot easily take time off-no one else to do the job
Partnership - Solution - 2-20 owners
Specialisation- lawyers, doctors, architects, accountants
more people to make decisions and more potential for conflict with those decisions
ability to generate more profit
must share that profit with partners
Private Limited (Pty Ltd) - Solution - Limited Liability
Owners are called shareholders
Public not able to buy shares
Separate legal existence from owners
Public Limited - Owners are known as shareholders
Shares can be publicly purchased.
