What are the factors with which commercial undertakings can be distinguished?I. ...
What 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
The correct answer is B.
Commercial undertakings can be distinguished based on certain factors. These factors include the size of the undertakings, the profits generated, the forms of ownership, and the location of the undertakings.
The first factor is the size of the undertakings. This refers to how big or small the business is in terms of its physical and financial resources. For example, a small grocery store would be considered a small-scale undertaking, while a multinational corporation like Coca-Cola would be a large-scale undertaking.
The second factor is the profits generated. This refers to the amount of money a business earns after deducting all the expenses. Businesses aim to make a profit as it indicates their success and sustainability. Profitable businesses can reinvest their earnings to expand and grow.
The third factor is the forms of ownership. This refers to who owns and controls the business. There are different forms of ownership, such as sole proprietorship, partnership, and corporation. Each form has its own advantages and disadvantages in terms of liability, decision-making, and taxation.
The fourth factor is the location of the undertakings. This refers to where the business is situated geographically. The location can affect the success of a business due to factors like proximity to customers, access to resources, and competition. For example, a retail store located in a busy shopping mall may have more customers compared to one located in a remote area.
Based on these factors, the correct answer to the question is Option B: I and III only, which means that the size of the undertakings and the forms of ownership are the factors used to distinguish commercial undertakings.
It's important to note that while profits generated and the location of the undertakings are relevant factors in evaluating businesses, they are not the specific factors mentioned in the question.
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