Business Activity

Land, labour, capital and enterprise are collectively known as

• Goods and services

• Business cycle

• Factors of production

• Output

Organisations run by central or local government are often referred to as

• Private sector

• Voluntary sector

• Public sector

• Mixed economy

Which of these is the best definition of the ‘economic problem’?

• People do not have enough money.

• There are not enough resources to satisfy people’s wants.

• There are too many factors of production.

• The amount of something produced by a person, machine or industry.

Which of the following is NOT a factor ofproduction?

• oil reserves

• factory buildings

• skilled labour

• a play station

Which of the following characteristics does a successful entrepreneur have? You may find more than one option. Tick all answers that apply...

• Creative / innovative

• Willing to take calculated risks

• Determined & resilient

• Risk averse

• Confident & good at communication

What might an entrepreneur risk when starting up a business? You may find more than one option. Tick all that apply...

• They might have invested their own personal savings

• Relationships with family & friends might suffer due to long hours

• Giving up a job / steady income

• Getting rich if the business does well

Which of the following is a benefit of being a Sole Trader?

• The owner has limited liability

• Finance can be raised by selling shares to friends and family

• The owner has complete control over business decisions

• Workload can be shared between the owners

Which of the following is an internal stakeholder of a business?

• The government

• A supplier

• A customer

• An employee

Why is the government a stakeholder of most businesses?

• The government owns all businesses

• The government receives dividends from all businesses

• The government receives taxes from businesses

• The government wants businesses to fail so that unemployment rises

________ is a good or service essential for living

• Want

• Desire

• Needs

• Factor of production