Business Studies: The Purpose Of Business Activity Quiz #2

7 Questions | Total Attempts: 960

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Business Study Quizzes & Trivia

Questions and Answers
  • 1. 
    What is meant by scarcity
    • A. 

      Choosing the next best alternative given up by choosing another item

    • B. 

      The lack of sufficient products to fulfill the total wants of the population

    • C. 

      Need to produce goods or services

    • D. 

      Next best alternative given up by choosing another item

  • 2. 
    What is meant by the division of labor
    • A. 

      Customers who owe money to the business

    • B. 

      Total cost of production divided by total output

    • C. 

      The production process is split up into different tasks and each worker performs one of these tasks

    • D. 

      Level of sales at which total costs equal total revenue

  • 3. 
    Define value added
    • A. 

      Payment for work usually paid weekly

    • B. 

      The income to a business during a period of time from the sale of goods or services

    • C. 

      The difference between the selling price of a product or service and the cost of inputs such as materials and components

    • D. 

      The surplus after total costs have been subtracted from sales revenue

  • 4. 
    Which one is not a factor of production? 
    • A. 

      Resources

    • B. 

      Labour

    • C. 

      Enterprise

    • D. 

      Land

  • 5. 
    What is a meant by business objectives
    • A. 

      Plans for the future containing numerical or financial targets

    • B. 

      A management structure in which most decisions are taken at the centre

    • C. 

      The financial records of a firm's transactions

    • D. 

      The aims or targets that a business works towards

  • 6. 
    The primary purpose of a business is to maximize profits for its owners or stakeholders while maintaining corporate social responsibility.
    • A. 

      True

    • B. 

      False

  • 7. 
    Services are tangible actions that can be stored.
    • A. 

      True

    • B. 

      False