The Purpose Of Business Activity
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The purpose of business activity
- 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
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