Year 9 Business and Economics - Revision Quiz I (Chapters 1-4)

Which one of the following is the correct definition of Economics?

• How the limited resources are allocated to satisfy human wants

• How individuals, consumers and firms make economic decisions

• How a government manages its domestic economy, and how the global economy operates

• How a business is organised and run to achieve its corporate goals

What is the focus of Microeconomics?

• How businesses make decisions

• How government manages the economy

• How individual consumers and firms make economic decisions

Select three characteristics below that describe successful entrepreneurs.

• Risk-takers

• Innovative

• Uncertain

• Decisive

Which of the following definitions best describes an employee?

• They provide financial capital to start a company

• They earn profits in the form of dividend payments from the firm's profits

• They have a specific job at the company for which they are paid

Which TWO of the following are examples of the role of entrepreneurship?

Select TWO answers.

• Make a profit

• Organise resources

• Adapt existing products

• Make business decisions

Which one of the following best defines the term stakeholder?

• An owner of a private limited company

• Someone with an interest in the success of a business

• Any individual who takes decisions within a business

• An individual who is a part owner in a business

Which one of the following is an advantage for an entrepreneur for starting a business as a sole trader?

• Limited liability means that losses can be minimised

• Owner has control of decision making

• It is easier to raise finance than other types of business structure

• Less risky than other types of business structure

Mark, a sole trader, has been trading for five years. A sole trader has unlimited liability. It means that he

• works on his own.

• can only hire a limited number of employees.

• is personally responsible for all business debts.

• cannot get a bank loan.

Which one of the following is not an advantage of being a sole trader?

• Easy to set up and run

• All the profits go to the owner

• Cannot be continued when the owner dies

• The owner has full control of the business

Which one of the following is always true regarding the differences between sole trader and partnership?

• Sole traders have unlimited liability but all partnerships enjoy limited liability.

• Sole traders are very small businesses that employ just a few workers, and partnerships are always larger than sole trader businesses.

• Sole traders are businesses owned by one person but partnerships have two or more owners.

• Sole traders are run by the less educated like corner shop owners, but partnerships are formed by licensed professionals like lawyers and accountants.