Take A Quick Quiz On Business Profile!

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Take A Quick Quiz On Business Profile! - Quiz

Did you know that a business profile is like a resume for your company? This quiz is focused on a business profile. For this quiz, you will want to know about trading stock, the easiest way to take ownership of a business. This authority regulates the companies and why objectives are imperative in business planning. This quiz will provide you an overview of what you need to know for having an impressive business profile.


Questions and Answers
  • 1. 

    A business which acquires trading stock to sell to resellers is classified as a:

    • A.

      Service provider

    • B.

      Wholesaler

    • C.

      Retailer

    • D.

      Manufacturer

    Correct Answer
    B. Wholesaler
    Explanation
    A business that acquires trading stock to sell to resellers is classified as a wholesaler. Wholesalers purchase goods in bulk from manufacturers or suppliers and then sell them in smaller quantities to retailers or other businesses. They act as intermediaries between the manufacturers and retailers, helping to distribute products efficiently and at a lower cost. Unlike retailers, wholesalers do not sell directly to consumers. Instead, they focus on supplying goods to other businesses in the supply chain.

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  • 2. 

    The easiest ownership structure to set up and operate under is the;

    • A.

      Sole trader

    • B.

      Partnership

    • C.

      Small company

    • D.

      Joint venture

    Correct Answer
    A. Sole trader
    Explanation
    A sole trader is the easiest ownership structure to set up and operate under because it requires only one individual to own and manage the business. There are no complex legal requirements or formalities involved in establishing a sole trader business. The owner has complete control over all business decisions and retains all profits. Additionally, there is less paperwork and fewer regulations to comply with compared to other ownership structures such as partnerships, small companies, or joint ventures.

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  • 3. 

    The maximum number of partners allowed in a general business partnership is:

    • A.

      2

    • B.

      10

    • C.

      20

    • D.

      100

    Correct Answer
    C. 20
    Explanation
    A general business partnership typically involves two or more individuals who come together to jointly own and operate a business. The maximum number of partners allowed in a general business partnership is 20. This means that a partnership can have up to 20 individuals as partners, sharing the profits, losses, and responsibilities of the business. Having too many partners can make decision-making and management more complex, which is why there is a limit on the number of partners in a general business partnership.

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  • 4. 

    The authority responsible for regulating companies is the:

    • A.

      Australian Securities and Investments Commission

    • B.

      Australian Competition and Consumer Commission

    • C.

      Australian Taxation Office

    • D.

      Federal Consumer Affairs Bureau

    Correct Answer
    A. Australian Securities and Investments Commission
    Explanation
    The Australian Securities and Investments Commission (ASIC) is the correct answer because it is the regulatory authority responsible for overseeing companies in Australia. ASIC's main role is to enforce and regulate company and financial services laws to protect consumers and ensure fair and transparent markets. It monitors and enforces compliance with regulations related to corporate governance, financial reporting, and disclosure requirements, among others.

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  • 5. 

    The minimum number of shareholders required to operate a small proprietary company is:

    • A.

      1

    • B.

      2

    • C.

      5

    • D.

      50

    Correct Answer
    A. 1
    Explanation
    A small proprietary company can be operated by a single shareholder. This means that only one person is required to own and manage the company. Unlike larger companies, which may have multiple shareholders, a small proprietary company can be owned and controlled by a single individual.

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  • 6. 

    Which one of the following ownership structures is recongnised by law as a sperate legal entity?

    • A.

      Sole trader

    • B.

      Partnership

    • C.

      Company

    • D.

      None of the above

    Correct Answer
    C. Company
    Explanation
    A company is recognized by law as a separate legal entity. This means that a company has its own rights and obligations, separate from those of its owners or shareholders. It can enter into contracts, own property, and be held liable for its own debts and obligations. This legal recognition provides protection to the owners or shareholders, as their personal assets are separate from the company's assets. In contrast, sole traders and partnerships do not have this separate legal entity status, and the owners or partners are personally liable for the debts and obligations of the business.

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  • 7. 

    Which of the following statements is correct?

    • A.

      A sole trader has limited liability for business debts

    • B.

      A company has limited liability for business debts

    • C.

      Partners have limited liability for partnership debts

    • D.

      Shareholders have limited liability for company debts

    Correct Answer
    D. Shareholders have limited liability for company debts
    Explanation
    The correct answer is that shareholders have limited liability for company debts. This means that the personal assets of the shareholders cannot be used to pay off the debts of the company. Shareholders are only liable for the amount of money they have invested in the company. This is one of the advantages of being a shareholder in a company, as it helps to protect their personal finances in case the company faces financial difficulties.

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  • 8. 

    Bill Smith and Tom Jones are in partnership together as automotive mechanics.  Which of the following proposed business names for the partnership have to registered?

    • A.

      Bill Smith & Tom Jones

    • B.

      B. Smith & T. Jones

    • C.

      Smith & Jones

    • D.

      Smith, Jones & Co.

    • E.

      None of the above

    Correct Answer
    D. Smith, Jones & Co.
    Explanation
    The proposed business name "Smith, Jones & Co." needs to be registered because it includes additional words such as "Co." which indicate that the partnership is operating as a company. The other proposed names do not require registration as they only include the individual names of the partners.

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  • 9. 

    Objectives are important in business planning because they:

    • A.

      Determine business goals

    • B.

      Prioritise business strategies

    • C.

      Set a direction to follow

    • D.

      Guarantee achievement of results

    Correct Answer
    C. Set a direction to follow
    Explanation
    Objectives are important in business planning because they set a direction to follow. By defining clear objectives, businesses can establish a roadmap for their actions and decisions. These objectives provide a sense of purpose and guide the overall strategy and decision-making process. They help prioritize business strategies and ensure that all efforts are aligned towards achieving the desired goals. Objectives also serve as a benchmark for measuring progress and success, providing a sense of focus and direction for the entire organization.

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  • 10. 

    An objective stated as 'to do my best" is unacceptable because it is not

    • A.

      Clear and concise

    • B.

      Measurable

    • C.

      Attainable

    • D.

      Challenging

    Correct Answer
    B. Measurable
    Explanation
    An objective stated as "to do my best" is unacceptable because it is not measurable. Measurable objectives are specific and quantifiable, allowing for clear evaluation of progress and success. "To do my best" is subjective and does not provide a clear indicator of what constitutes success or how progress will be measured.

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  • 11. 

    A business name is registered with which authority in Victoria?

    • A.

      Office of Fair Trading

    • B.

      Office of Consumer and Business Affairs

    • C.

      Consumer Affairs Victoria

    Correct Answer
    C. Consumer Affairs Victoria
    Explanation
    Consumer Affairs Victoria is the correct answer because it is the authority responsible for registering business names in Victoria. They ensure that businesses comply with the relevant laws and regulations, protect consumer rights, and promote fair and competitive market practices. By registering with Consumer Affairs Victoria, businesses can establish their legal identity and protect their brand.

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  • 12. 

    ATO is normally recognised as meaning:

    • A.

      Australian Taxation Office

    • B.

      Automotive Travel Office

    • C.

      At the Office

    • D.

      All of the above

    Correct Answer
    A. Australian Taxation Office
    Explanation
    The correct answer is Australian Taxation Office. ATO is commonly recognized as the abbreviation for the Australian Taxation Office, which is the government agency responsible for administering the tax laws in Australia. It is responsible for collecting taxes, providing guidance and support to taxpayers, and enforcing compliance with tax laws. The other options, Automotive Travel Office and At the Office, are not commonly associated with the abbreviation ATO in the same way as the Australian Taxation Office. Therefore, the correct answer is Australian Taxation Office.

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  • 13. 

    One million dollars is written correctly in Australia currency as:

    • A.

      $1,000,000:00

    • B.

      $1000000.000

    • C.

      $1,000,000.00

    Correct Answer
    C. $1,000,000.00
    Explanation
    The correct answer is $1,000,000.00. In Australia, the standard format for writing large amounts of money is to use commas to separate thousands and a period to indicate the decimal point. The dollar sign is placed at the beginning of the amount. Therefore, $1,000,000.00 is the correct way to write one million dollars in Australia currency.

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  • 14. 

    GST should be charged by businesses that have revenue in excess of $75,000

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Businesses that have revenue in excess of $75,000 should charge GST. This means that if a business earns more than $75,000 in revenue, it is required to charge GST on its goods and services. This is a threshold set by the government to determine which businesses should collect and remit GST.

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