Business Organisations and Vocabulary Practice Quiz (10 questions)

All questions and answers

1. Which set correctly distinguishes the organisation types in the classification?

Private-sector companies, charities, and associations grouped together as public-sector organisations
Private-sector companies, public-sector companies, and non-profit organisations such as charities and associations
Public-sector companies, charities, and associations grouped together as market-based businesses
Private-sector companies, public-sector companies, and partnerships whose main purpose is distributing profits

Private-sector companies, public-sector companies, and non-profit organisations such as charities and associations

Explanation

The classification distinguishes private-sector companies, public-sector companies, and non-profit organisations such as charities and associations. A charity or association is not a private-sector company simply because it carries out activities.

2. What combination characterises a private-sector company?

Market activity and the purpose of making a profit
Public funding and the purpose of distributing grants
Public ownership and the purpose of providing a service
Voluntary membership and the purpose of supporting a cause

Market activity and the purpose of making a profit

Explanation

A private-sector company is characterised by market activity and the purpose of making a profit. Public ownership and service provision describe a different organisational context, not this defining combination.

3. A company has 180 employees. Which size category does it fall into?

A large company, with more than 5,000 employees
A micro-business, with fewer than 10 employees
A small company, with 10–249 employees
A medium-sized company, with 250–4,999 employees

A small company, with 10–249 employees

Explanation

With 180 employees, the company falls within the small-company range of 10–249 employees. The medium-sized category begins at 250 employees, so the larger category does not apply.

4. A business extracts minerals from the ground and then processes them into products. Which activity belongs to the primary sector?

Processing the minerals into finished products
Extracting the minerals from the ground
Packaging the products for retail distribution
Selling the products directly to customers

Extracting the minerals from the ground

Explanation

Mining is a primary-sector activity because it extracts raw materials. Processing those minerals into products belongs to the secondary sector, rather than the primary sector.

5. What is a headquarters?

The main office of an organisation
An establishment away from the main location that conducts the same line of business
A subdivision representing one area of a company's activity
A company that controls another business by owning voting stock

The main office of an organisation

Explanation

A headquarters is the main office of an organisation and is used to identify its nationality. A branch office is located away from the main office and conducts the same line of business, so it is not the headquarters.

6. A holding company controls another business through ownership of what proportion of its voting stock?

Exactly 50% of the voting stock
At least 25% of the voting stock
More than 50% of the voting stock
Less than 50% of the voting stock

More than 50% of the voting stock

Explanation

A holding company controls another business by owning more than half of its voting stock. Ownership of exactly 50% does not meet this stated threshold.

7. What is the function of a trademark in relation to goods?

It names a specific product without requiring official registration.
It describes a selection of different items offered by a company.
It identifies goods through a registered design, name, or logo and helps prevent unauthorised use.
It groups a company's activities under a particular area of work or product.

It identifies goods through a registered design, name, or logo and helps prevent unauthorised use.

Explanation

A trademark identifies goods using a registered design, name, or logo and helps protect them from unauthorised use. A brand can name a product, but it does not carry the specific registration and protection function described here.

8. In what year was Smith plc founded by David Smith?

1891
1921
1901
1910

1901

Explanation

Smith plc was founded by David Smith in 1901. The other dates are not given as the company's founding year.

9. How does a private-sector company differ from a non-profit organisation such as a charity?

It must be a PLC, while a non-profit organisation must be an association.
It operates in the market to make a profit, while a non-profit organisation is not established for profit.
It provides public services, while a non-profit organisation sells products to consumers.
It is owned by the government, while a non-profit organisation is owned by private shareholders.

It operates in the market to make a profit, while a non-profit organisation is not established for profit.

Explanation

Private-sector companies are characterised by market activity and the purpose of making a profit, whereas charities and associations are examples of non-profit organisations. Government ownership and the listed legal-structure requirements do not define this distinction.

10. A company has 320 employees. Which company-size category does it belong to?

A micro-business
A medium-sized company
A small company
A large company

A medium-sized company

Explanation

Medium-sized companies have between 250 and 4,999 employees, so a workforce of 320 falls within that range. A small company has fewer than 250 employees, which makes that classification incorrect.

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Lock in the answers with 10 flashcards on Business Organisations and Vocabulary.

Which organisation types does the grid distinguish?

Private-sector companies, public-sector companies, and non-profit organisations.

What characterises a private-sector company?

Market activity and the purpose of making a profit.

What employee ranges define the four company-size categories?

Micro-businesses have fewer than 10 employees; small companies, 10–249; medium-sized companies, 250–4,999; and large companies, more than 5,000.

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