Business Studies: The Purpose Of Business Activity Quiz #2

The division of labor refers to the practice of dividing the production process into different tasks and assigning each worker to perform a specific task. This allows for specialization and efficiency in the production process as workers become skilled and efficient in their assigned tasks. By dividing the labor, tasks can be completed more quickly and efficiently, leading to increased productivity and overall output.

Scarcity refers to the lack of sufficient products to fulfill the total wants of the population. This means that there is a limited supply of goods and resources, while the demand or wants of the population are unlimited. As a result, people must make choices and prioritize their needs and wants, as they cannot have everything they desire. This concept of scarcity is a fundamental principle in economics and influences decision-making and resource allocation.

The statement is true because businesses exist to generate profits for their owners or stakeholders. However, it is also important for businesses to maintain corporate social responsibility, which means taking into account the impact of their actions on society and the environment. This includes ethical business practices, sustainable operations, and contributing to the well-being of the community. By balancing profitability with social responsibility, businesses can ensure long-term success and positive impact.

Services are intangible actions that cannot be stored, but goods are tangible actions that can be stored as well as used.

Value added refers to the difference between the selling price of a product or service and the cost of inputs such as materials and components. It represents the additional value created by a business through its production process. This measure helps to determine the economic contribution made by a company by quantifying the amount of value it adds to the raw materials or inputs it uses. It is calculated by subtracting the cost of inputs from the selling price, and it represents the surplus or profit generated by the business after deducting all costs.

The term "resources" is a broad and inclusive term that encompasses all the factors of production, including labor, enterprise, and land. Therefore, it cannot be considered as something that is not a factor of production.

Business objectives refer to the aims or targets that a business works towards. These objectives outline the specific goals and outcomes that a business wants to achieve within a certain timeframe. They provide direction and purpose to the organization and guide decision-making and resource allocation. Business objectives can be both qualitative and quantitative, encompassing various areas such as financial performance, market share, customer satisfaction, innovation, and sustainability. By setting clear objectives, businesses can align their efforts and measure their progress towards achieving their desired outcomes.