Business and its environment A Level

The machinery that is used by a business is an example of which factor of production?

• land

• labor

• capital

• enterprise

An entrepreneur is someone who:

• is an employee of a business enterprise

• takes the risk of starting and managing a business venture

• works for the government to provide public services

• just provides capital to a business start-up

Which one of the following is not likely characteristic of a successful entrepreneur?

• willing to take risks

• committed and self-motivated

• innovative

• risk averse

Business enterprise is claimed to bring all of the following benefits to an economy with the exception of:

• creation of employment

• a more dynamic and innovative economy

• economic growth

• a reduction in competition

External environment that is required by a business to be able to operate are as follow except

• government

• manager

• supplier

• customer

Service industries fall into ....... business sector.

• primary

• secondary

• tertiary

• consumer

Examples of consumer service, except:

• oil company

• insurance

• theme park

• university

What is opportunity cost?

• the value of the next best option that is not selected when a choice is made.

• there is not enough of it.

• things people make to earn money.

• actions people do to earn money.

Michael has been invited by a friend to go fishing on Friday. His parents are going to a concert. Michael chooses to go fishing with his friend. What is his opportunity cost?

• fishing with a friend

• going to a concert

Provide raw materials for business.

• government

• supplier

• primary sector

• entrepreneur