Ib Business And Management Business Organisation & Environment: 1.1

50 Questions

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Business Organisation Quizzes & Trivia

Questions and Answers
  • 1. 
    The resources used in the production process afre collectively known as
    • A. 

      Human capital resources

    • B. 

      Raw material

    • C. 

      Working capital

    • D. 

      Factors of production

  • 2. 
    Identify the correct stage of production from the clues below
    • A. Primary Sector business activity
    • A.
    • B. Secondary Sector business activity
    • B.
    • C. Tertiary Sector business activity
    • C.
    • D.
    • D.
  • 3. 
    Find the correct factor of production from the given definitions
    • A. Entrepreneurship
    • A.
    • B. Land
    • B.
    • C. Capital
    • C.
    • D. Labour
    • D.
  • 4. 
    Identify the correct functional department below
    • A. Finance
    • A.
    • B. Operations Management
    • B.
    • C. Marketing
    • C.
    • D. Human Resource Management
    • D.
  • 5. 
    Specialisation does not benefit from
    • A. 

      Monotony of doing the same job

    • B. 

      Productivity gains

    • C. 

      Products that are mass produced

    • D. 

      Increased competitiveness

  • 6. 
    The dfference between the costs of inputs in the production process and the price of the final output is known as
    • A. 

      Income

    • B. 

      Revenue

    • C. 

      Added value

    • D. 

      Profit

  • 7. 
    Which of the following is NOT an example of primary production?
    • A. 

      Agriculture

    • B. 

      Fishing

    • C. 

      Mining

    • D. 

      Coaching

  • 8. 
    Which occupation does not exist in the tertiary sector?
    • A. 

      Estate agent

    • B. 

      Secretary

    • C. 

      Machinist

    • D. 

      Librarian

  • 9. 
    The primary sector is the part of the economy that consists of
    • A. 

      Agriculture, fishing and extractive services

    • B. 

      Little, if any, government control

    • C. 

      Businesses that have been recently set up

    • D. 

      Organisations that lack finance

  • 10. 
    The secondary sector
    • A. 

      Forms the largest employment sector in most developed countries

    • B. 

      Provides both goods and services

    • C. 

      Consists of businesses involved in the manufacturing of goods

    • D. 

      Is labour intensive

  • 11. 
    Production is
    • A. 

      The process of making goods and services from the available factor inputs

    • B. 

      The manufacturing of goods and services in the secondary industry

    • C. 

      Any output other than services

    • D. 

      The second stage of the output process

  • 12. 
    The advantages of specialisation include all those listed except
    • A. 

      A greater amount of output

    • B. 

      Development of expertise and skills

    • C. 

      Wider choice of options for customers

    • D. 

      Increase in overall efficiency of production

  • 13. 
    Which of the following businesses would not be described as operating in the teriary sector
    • A. 

      Pest control

    • B. 

      Restaurant

    • C. 

      Private security

    • D. 

      Textiles

  • 14. 
    The process of increasing the value of a resource in the production process is known as
    • A. 

      Adding value

    • B. 

      Chain of production

    • C. 

      Production function

    • D. 

      Value chain analysis

  • 15. 
    Computers are an example of which type of factor input?
    • A. 

      Labour

    • B. 

      Land

    • C. 

      Capital

    • D. 

      Machinery

  • 16. 
    Which of the following is least specialised?
    • A. 

      Lawyer of criminal law

    • B. 

      Taxi driver

    • C. 

      Primary school teacher

    • D. 

      Professional basketball player

  • 17. 
    Public utilities, such as water and gas supply, are usually considered as being in the teriary sector because they
    • A. 

      Are owned by the government

    • B. 

      Provide services to the general public

    • C. 

      Are involved with turning resources into a usable product

    • D. 

      Are not extracted or manufactured

  • 18. 
    The term 'product' refers to
    • A. 

      Services only

    • B. 

      Goods only

    • C. 

      Both goods and services

    • D. 

      The physical attributes of a good

  • 19. 
    The ________ sector of the economy is owned by individuals and companies, usually in pursuit of making   a profit. The ________ sector is controlled by the governemnt that aims to primarily to provide a service by acting in the public's best interest.
    • A. 

      Private, Public

    • B. 

      Public, Private

    • C. 

      Primary, Tertiary

    • D. 

      Tertiary, Primary

  • 20. 
    Which of the following would not be regarded as part of the tertiary sector?
    • A. 

      Leisure and tourism

    • B. 

      Insurance

    • C. 

      Education and training

    • D. 

      Engineering

  • 21. 
    The division of labour is most extensively observed in which of the following cases?
    • A. 

      Original oil paintings

    • B. 

      Made-to-measure suits

    • C. 

      Lecturing at university

    • D. 

      Hairdressing

  • 22. 
    As factors of production, which of the following  is not classified as land?
    • A. 

      Fish

    • B. 

      Paper

    • C. 

      Water

    • D. 

      Crude oil

  • 23. 
    An entrepreneur is someone who 
    • A. 

      Owns a business as a sole trader or as the primary shareholder

    • B. 

      Organises factor inputs and takes risks in business decisions

    • C. 

      Is an industrialist who manages production and output

    • D. 

      Has a managerial or supervisory role within an organisation

  • 24. 
    A country that has the highets share of its output in the the primary sector is likely to have the greatest share of  its employment in the tertiary sector as workers will be providing a service.
    • A. 

      True

    • B. 

      False

  • 25. 
    As less developed economies move into developed economy status, there is typically a shift in output and employment from
    • A. 

      Primary to secondary

    • B. 

      Secondary to tertiary

    • C. 

      Primary to secondary to tertiary

    • D. 

      Primary to secondary or tertiary

  • 26. 
    _____________ are physical and tangible goods sold to the general public. They include cars and washing machines, which are referred to as durable consumer goods. Non-durable consumer goods include food, drinks and sweets that can only be used once
  • 27. 
    ______________ are non-tangible products that are sold to the general public and include hotel accommodation, insurance services and train journeys
  • 28. 
     ______________ are physical goods that are used by an industry to aid in the production of other goods and services, such as machines and commercial vehicles
  • 29. 
    _______________ are the resources needed by businesses to produce goods or services
  • 30. 
    Land, Labour, Capital and Enterprise are collectively known as _________________.
  • 31. 
    ______________:  Natural resources that can be found on the planet. This includes renewable and non-renewable natural resources such as water, wood, fish and physical land itself
  • 32. 
    ___________: The physical and mental human effort used in the production process
  • 33. 
    _____________:  The finance needed to set up a business and pay for its continued operations or expansion. Also includes the man-made goods used in the production process (capital goods)
  • 34. 
    _______________: Risk taking individuals who combine the other factors of production into a unit that is capable of producing goods and services. It provides a managing, decision-making and coordinating role
  • 35. 
    Marketing, Finance, Human Resource Management and Operations Management are collectively known as ______________.
  • 36. 
    _____________: The commercial processes involved in creating and designing, promoting and selling and distributing a product or service
  • 37. 
    Which of the following is not a factor of production?
    • A. 

      Capital

    • B. 

      Finance

    • C. 

      Entrepreneurship

    • D. 

      Labour

  • 38. 
    Which of the following is not a factor of production?
    • A. 

      Labour

    • B. 

      Capital

    • C. 

      Human Resources

    • D. 

      Land

  • 39. 
    Which of the following is not a business function?
    • A. 

      Finance

    • B. 

      Human resources

    • C. 

      Entrepreneurship

    • D. 

      Operations

  • 40. 
    Which of the following is not a business function?
    • A. 

      Labour

    • B. 

      Marketing

    • C. 

      Finance

    • D. 

      Operations Management

  • 41. 
    _____________ Business Activity: Firms engaged in farming, fishing, oil extraction and all other industries that extract natural resources so that they can be used and processed by other firms.
  • 42. 
    _______________ Business Activity:   Firms that manufacture and process products from natural resources, including computers, brewing, baking, clothing and construction
  • 43. 
    ______________ Business Activity: Firms that provide services to consumers and other businesses, such as retailing, transport, insurance, banking, hotels, tourism and telecommunications
  • 44. 
    ___________:  Cost measured in terms of the next best alternative forgone when a choice is being made; eg. when deciding to finance a new promotion strategy, employing an extra sales person may need to be foregone.
  • 45. 
    • A. 

      A cost of $100,000

    • B. 

      Not spending $100,000 on the promotion of an existing product

    • C. 

      Securing a $100,000 loan from a bank

    • D. 

      Purchasing a top-of-the line BMW for the CEO

  • 46. 
    ___________: The specialisation of workers in the provision of goods and/or services by breaking a job down into particular roles or components that are repeated by the same workers
  • 47. 
    ____________: The part of the economy under the control of private individuals and businesses, rather than the government. Examples may include sole traders, partnerships and companies
  • 48. 
    _____________: The part of the economy that is under control of the government. examples may include state health and education services, the emergency services and roading infrastructure
  • 49. 
    ___________: A shift in the relative share of national output and employment that is attributed to each business sector; i.e. primary, secondary and tertiary sectors
  • 50. 
    ____________: Is the difference between a product's price and the total cost of the inputs that went into making it. It is the extra worth created in the production process