Question 1
Business UnitsWhat are the factors with which commercial undertakings can be distinguished?
I Size of the undertakings
II Profits generated
III Forms of ownership
IV Location of the undertakings.
- A.I and II only
- B.I and III only
- C.II and III only
- D.III and IV only.
Show the answer and explanation
Answer: B (I and III only)
Explanation
Business units are classified by their size and by who owns them (sole trader, partnership, company, public enterprise). Profit and location do not define the type.