Preliminary Business Studies

Half Yearly Examination

Reading Time: 5 mins
Working Time: 1 hours

Section A: Multiple Choice

1. A business is:
a. Any activity undertaken by people
b. Only motivated by maximising profit
c. Where people work together to achieve set goals
d. None of the above
2. The person who risks his or her time, energy and money to start a
business is called:
a. An employer
b. An entrepreneur
c. An innovator
d. A financier
3. Financial goals would be mainly concerned with:
a. Job security and pay of the managers and owners
b. An adequate rate of return on capital
c. The personal goals of power and status of the managers
d. Benefiting the community
4. An example of a secondary industry is:
a. Plastics Manufacturing Limited
b. Zenon Mining
c. Canberra Legal Centre
d. Heritage Motel
5. A public company:
a. Has the words propriety limited after its name
b. Is a business owned by the government
c. Is owned by up to 50 shareholders
d. Is listed on the stock exchange

6. Businesses are important to the Australian economy because they:

a. Provide goods and services to satisfy consumers wants
b. Provide employment for millions of people
c. Contribute to Australias Gross Domestic Product
d. All of the above
7. Three forms of organisational structure of a business are:
a. Functional, strategic business unit, product
b. Functional, network, value chain
c. Functional, geographic, management
d. Functional, planning, product
8. The government regulatory body most concerned with the competitive
situation in Australia is:
a. ASIC
b. Fair Trading
c. ASX
d. ACCC
9. The items acquired from suppliers such as raw materials and
equipment are known as:
a. Inputs
b. Throughputs
c. Outputs
d. A system
10.

a.
b.
c.
d.

Social and ethical responsibility of a business refers to:

A businesss responsibility only to its shareholders
A businesss responsibility only to its internal stakeholders
A businesss responsibility only to its external stakeholders
A businesss responsibility to its internal and external
stakeholders

Section B: Short Answer Questions

Question 11 (10 Marks)
Explain each of the following terms:
a.
Limited liability (2 marks)
b.
Sole trader (2 marks)
c.
Stakeholders (2 marks)
d.
Value chain (2 marks)
e.
Mission statement (2 marks)

Question 12 (10 Marks)

Typically a business endures through four major phases of development
called a business life cycle. List each of the four phases and for each phase
explain 2 characteristics of this phase.

Question 13 (10 Marks)

Using a business or type of business you are familiar with:
a.
list the resources you would need to start such a business
b.
Design a simplified flow chart to show the stages of production
c.
Identify four relevant stakeholders and outline the responsibilities the
business has to each one.

Section C: Extended Response (20 Marks)

Attempt only one question from this section
Question 14
Write an extended response to:
a.
OR
b.

explain the advantages and disadvantages of the partnership entity

to conduct a business
Describe the role of government in regulation business.