Business Studies Practice 1.1

Iron, minerals, coal and plants are examples of which factors of production?

• Land

• Labor

• Entrepreneurship

• Capital

The goods used in the production process such as factories, machinery and equipment are classified into which factors of production?

• Land

• Resources

• Labor

• Capital

Difference between wants and needs and available resources is called

• Economy

• Resources

• Factors of Production

• Scarcity

Why added value is important?

• Because sales revenue is greater than cost of materials bought in by business

• Because people have unlimited wants

• Because workers are trained in one task

• Because resources are scarce

__ is a sector that involves firms that supply a service to consumers and other businesses.

• Primary sector

• Tertiary sector

• Secondary sector

• Intermediate sector

Which of the following is an example of businesses within the primary sector.

• Doctor

• Lawyer

• Fishing

• Pilot

Which is NOT a characteristic of successful entrepreneurs?

• Hard working

• Risk taker

• Powerful

• Innovative

The advantage of a person becoming an entrepreneur is:

• More money to be earned than working for an employer

• Less risk of business failure

• There is more independence than when working for an employer

• No opportunity cost involved in becoming an entrepreneur

Which of the following is not an effective way of measuring the size of a business?

• Number of employees

• Value of capital invested

• Value of sales

• Profit level

Which of the following is an example of horizontal integration between two businesses?

• An oil company and an insurance company merge

• A steel firm takes over a coal mine that supplies coal

• A shoe shop buys out a shoe factory

• Coca-Cola takes over a small soft drink business