The Purpose Of Business Activity


13 Questions | Total Attempts: 61

SettingsSettingsSettings
Please wait...
Business Quizzes & Trivia

The purpose of business activity


Questions and Answers
  • 1. 
    Which of these is the best definition of the ‘economic problem’?
    • A. 

      People do not have enough money.

    • B. 

      There are not enough resources to satisfy people’s unlimited wants.

    • C. 

      There are not enough wants for the unlimited resources to satisfy.

    • D. 

      There are too many factors of production.

  • 2. 
    Which of the following is NOT a factor of production?
    • A. 

      Oil reserves

    • B. 

      Factory buildings

    • C. 

      Skilled labour

    • D. 

      Music CDs

  • 3. 
    If I buy a book for $10 then the opportunity cost is:
    • A. 

      Everything else I could have bought with the $10

    • B. 

      $10

    • C. 

      He benefit lost from not being able to consume the next best option

    • D. 

      The benefit gained from buying the book.

  • 4. 
    Making choices is necessary in all economic systems because:
    • A. 

      There are so many products that we cannot use them all at once

    • B. 

      The government has so much money that it does not know what to do with it

    • C. 

      There are so many resources compared to people’s needs that we have to choose which ones not to use

    • D. 

      There are so many wants compared to scarce resources that we have to decide what to produce.

  • 5. 
    Division of labour can be defined as:
    • A. 

      Workers specialise on just one task and become more efficient at it.

    • B. 

      Workers become specialist in all jobs.

    • C. 

      All firms only have one worker so jobs are divided between the firms.

    • D. 

      No workers are employed as machines always do all the work.

  • 6. 
    One of the drawbacks to division of labour is that:
    • A. 

      Output and efficiency falls

    • B. 

      Workers spend time on training to do several different jobs

    • C. 

      Workers can become bored through only concentrating on one job

    • D. 

      No machinery is used and this slows down production.

  • 7. 
    The best definition of a business organisation is:
    • A. 

      Any organisation owned by the government

    • B. 

      A unit that buys products from other firms and sells them to consumers for a profit

    • C. 

      An organisation that produces only those goods and services that satisfy people’s basic needs

    • D. 

      A unit that combines the factors of production to make products that satisfy people’s wants.

  • 8. 
    All of the following are common business objectives (aims) except:
    • A. 

      To grow

    • B. 

      To pay taxes

    • C. 

      To survive

    • D. 

      To make profits

  • 9. 
    Which of the following is NOT one of the benefits of business growth?
    • A. 

      Sales will increase.

    • B. 

      Market share will probably rise.

    • C. 

      The business will probably become more secure and employ more people.

    • D. 

      Management will have less work to do.

  • 10. 
    Which stakeholders in a business (groups with a direct interest in the business) are paid a salary by the business and lead and direct it?
    • A. 

      The government

    • B. 

      The workers

    • C. 

      The consumers

    • D. 

      The managers

  • 11. 
    Which stakeholders pay money to the business and expect a reliable product in return?
    • A. 

      The government

    • B. 

      The workers

    • C. 

      The consumers

    • D. 

      The managers

  • 12. 
    The main objective of a newly formed business is most likely to be:
    • A. 

      Survival

    • B. 

      Maximum profit

    • C. 

      Rapid growth

    • D. 

      Providing a service to the community

  • 13. 
    A business decides to increase output of a profitable product from a polluting factory. This decision is most likely to cause conflict between which groups of stakeholders?
    • A. 

      Workers and owners

    • B. 

      Government and the community

    • C. 

      Owners and the community

    • D. 

      Managers and the owners