Business Management Unit 1 Exam Questions with Correct Answers

Business Management Unit 1 Exam Questions
with Correct Answers 2026-2027

Partnership - CORRECT ANSWER -
An unincorporated legal business structure with a minimum of two and a maximum of 20 owners



Small Business Characteristics - CORRECT ANSWER -
Has less than 20 employees, Independently owned and operated by usually one or two people



For-Profit Organisation - CORRECT ANSWER -Main objective is to make a profit



Not-For-Profit Organisation - CORRECT ANSWER -Main objective is to achieve a social mission X2 X2 X2 X2 X2 X2 X2 X2 X2 X2 X2 X2




Importance of Business Planning - CORRECT ANSWER - X2 X2 X2 X2 X2 X2 X2




To ensure the business suits you and your customers and that you consider all of the time, energy and mo
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ney that will go into running the business. Shows the probability of success and important for seekin g fin
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ance from a lender X2 X2 X2




Business Location - CORRECT ANSWER -Shopping centres, retail shoppingRstrips, online presence, home-
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based -
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factors affecting this include visibility, cost, proximity to customers and suppliers, proximity to competit o
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rs, complementary businesses
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KPI - Key Performance Indicator - CORRECT ANSWER -
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A way of measuring the success of a business or organisation. There are two types: financial and non-
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financial
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Profitability - CORRECT ANSWER -The quality of affording gain or benefit or profit
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Contribution of small business to the economy - CORRECT ANSWER - X2 X2 X2 X2 X2 X2 X2 X2 X2 X2




Taxation revenue, economic growth, export earnings,
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External Macro Environment - CORRECT ANSWER -PELTS -
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Political, Economic, Legal, Technological, Social
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