Types Of Business Activity Quiz Questions

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Types Of Business Activity Quiz Questions - Quiz

Any activity that is carried out with the sole intent of making profits is seen as a business activity. This quiz is made up of a few questions about the second chapter from the IGCSE Business Studies book: Types of Business Activity. Take it up and see just how much you recall before the exam and look for more tests like this.

Questions and Answers

1.

What happens in the second stage of production?
- A.
  
  Manufactures goods using raw materials
- B.
  
  Extracts and uses the natural resources of the earth
- C.
  
  Business controls all of the market of a product
- D.
  
  Provides services to consumers and the other sectors of industry
Correct Answer
A. Manufactures goods using raw materials

Explanation
In the second stage of production, the process involves manufacturing goods using raw materials. This means that the raw materials are transformed and processed to create finished products that can be sold in the market. This stage typically includes activities such as assembling, refining, and packaging the raw materials to create the final product.

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2.

Business size can be measured in a number of ways. Except one:
- A.
  
  By value of output and sales
- B.
  
  By capital employed
- C.
  
  By number of employees
- D.
  
  By number of competitors
Correct Answer
D. By number of competitors

Explanation
Business size can be measured by the value of output and sales, by capital employed, and by the number of employees. However, the number of competitors does not directly measure the size of a business. The number of competitors may vary depending on the industry and market conditions, but it does not provide a clear indication of the size or scale of a business.

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3.

Which one may not be interested in comparing the size of businesses?
- A.
  
  Governments
- B.
  
  Workers
- C.
  
  Banks
- D.
  
  Mayors
Correct Answer
D. Mayors

Explanation
Mayors may not be interested in comparing the size of businesses because their primary focus is on governing and managing the affairs of a specific city or municipality. While they may interact with businesses and promote economic development, their main responsibilities lie in areas such as public safety, infrastructure, and community development. Comparing the size of businesses is typically more relevant to governments, workers, and banks, as they may use this information for various purposes such as policy-making, employment opportunities, and financial analysis.

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4.

What is the difference between a takeover and a merger?
- A.
  
  Takeover is when the owners of two businesses agree to join their firms together to make one business; merger is a business buys out the owns of another business which then becomes part of the 'predator' business
- B.
  
  Takeover is a business buys out the owns of another business which then becomes part of the 'predator' business; merger is when the owners of two businesses agree to join their firms together to make one business
- C.
  
  Takeover is when employees who are taking action stand outside their workplace to prevent or protest at the delivery of goods, arrival and departure of other employees, etc.; merger is when employees refuse to work
- D.
  
  Takeover is when employees refuse to work; merger is when employees who are taking action stand outside their workplace to prevent or protest at the delivery of goods, arrival and departure of other employees, etc.
Correct Answer
B. Takeover is a business buys out the owns of another business which then becomes part of the 'predator' business; merger is when the owners of two businesses agree to join their firms together to make one business

Explanation
A takeover is when one business acquires another business by buying out its owners, resulting in the acquired business becoming part of the acquiring business. On the other hand, a merger is when the owners of two separate businesses agree to combine their firms, creating a single unified business entity.

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5.

What is one of the reasons why businesses stay small?
- A.
  
  The number of workers
- B.
  
  The type of industry the business operates in
- C.
  
  The profit the business makes
- D.
  
  The value of output and sales
Correct Answer
B. The type of industry the business operates in

Explanation
One of the reasons why businesses stay small is the type of industry they operate in. Different industries have varying levels of competition, market demand, and growth potential. Some industries may have high barriers to entry, making it difficult for new businesses to enter and expand. Additionally, certain industries may have limited market size or slow growth rates, making it challenging for businesses to scale up. Therefore, the type of industry can significantly impact the size and growth potential of a business.

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Current Version
Mar 22, 2023

Quiz Edited by
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Apr 23, 2010

Quiz Created by
Katecambel

Types Of Business Activity Quiz Questions

What happens in the second stage of production?

Business size can be measured in a number of ways. Except one:

Which one may not be interested in comparing the size of businesses?

What is the difference between a takeover and a merger?

What is one of the reasons why businesses stay small?