Business Studies: The Purpose Of Business Activity Quiz #3

13 Questions | By Sachou10 | Last updated: Mar 22, 2022 | Total Attempts: 564

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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