Business Activity: Part One

Which of the following describes the money going into a business?

• An input

• Revenue

• An output

Identify the activity which does not support trade.

• Banking

• Warehousing

• Insurance

• Mining

In business, why is it essential to make a profit?

• It provides a return to investors.

• It provides funds for future extension

• It increases the reputation of a company

• All of the above

In which condition that shows a business is able to make profit?

• Costs are equal with sales value

• Sales value is higher than costs

• Sales value is lower than costs

• Costs are higher than selling price

Which one of the following is true about added value?

• Difference between profit and production cost

• Difference between sales value and total cost

• Difference between selling price and cost of production

• Difference between sales value and revenue

When can you say that a business add value?

• When revenue is greater than production costs

• When revenue equals production costs

• When revenue is less than production costs

Choose TWO answers that are going to add value to a business.

• A. Reduce selling price and production costs increase

• B. Increase sales value and maintain production cost

• C. Increase sales value and production costs increase

• D. Maintain sales value and reduce production costs

Division of labour means

• A. Different tasks are done by same people in a group of workers

• B. Different tasks are done by one person in a business

• C. Similar tasks are done by different people in a group of workers

• D. Different tasks are done by different people in a group of workers

Which item does not cause any business risk?

• A. Changing government policy

• B. Breakdown of machinery

• C. Efficient management

• D. Riot

Which one of the answers below is true?

• A. Specialisation involves on investing in one business only

• B. Specialisation involves on focusing one particular job only

• C. Specialisation involves on focusing one particular job and business only

• D. None of the above