How Supply of Goods and Services Relates to Ownership, Classification and Scale

Question 1

The type of goods and services offered determines the

Accepted Answer

classification of the business — What is produced or offered determines the category of the business.

Question 2

A business that processes raw materials is classed as

Accepted Answer

manufacturing — Processing raw materials into finished goods is a manufacturing activity.

Question 3

Heavy manufacturing is usually of ______ scale.

Accepted Answer

large — It needs expensive factories and machinery, so it is usually large-scale.

Question 4

Large-scale businesses tend to choose the ______ ownership form.

Accepted Answer

company — The company form allows raising large capital and gives limited liability.

Question 5

A micro-scale nasi lemak stall is best suited as a

Accepted Answer

sole proprietorship — A micro business is well managed as a sole proprietorship.

Question 6

Why is a petroleum-refining company a public limited company?

Accepted Answer

Because it needs very large capital — Capital in the billions is more easily raised by selling shares to the public.

Question 7

The links between business elements can be summarised as

Accepted Answer

goods/services → classification → scale → ownership form — The type of offering influences classification, then scale and ownership form.

Question 8

A small hair salon usually operates at ______ scale.

Accepted Answer

micro — Small services such as a hair salon suit micro scale.

Question 9

A business needing little capital and easy management suits a

Accepted Answer

sole proprietorship or partnership — These forms are simple and suit micro and small businesses.

Question 10

Which statement is most accurate?

Accepted Answer

Ownership form, classification and scale are interconnected — All these elements influence one another.