Module 1 HL Review

The resources used in the production process are collectively known as

• Working Capital

• Raw Materials

• Capital Resources

• Resource Inputs

The _______ sector of the economy is owned by individuals and companies, usually in pursuit of making profit. The _______ sector is controlled by the government and aims primarily to provide a service by acting in the public’s best interest

• Private, Public

• Public, Private

• Primary, Tertiary

• Tertiary, Primary

The process of increasing the value of a resource in the production process is known as

• Chain of Production

• Production Function

• Value Added

• Profit

Disadvantages of sole traders do not include

• a constraint of lack of time and specialization

• a reliance on the efforts and liability of just one person

• the demands of having to be multiskilled

• autonomy in decision making

Which of the following is not a reason why people may choose to set up their own business?

• There are higher risks than working for someone else

• There is a lack of employment opportunities

• To enjoy autonomy in decision making

• To extend personal interests and hobbies

A drawback of public limited companies is that they

• Represent high risks to investors

• have limited liability

• rely on government funding

• have to publish their financial information to stakeholders

A public sector enterprise is

• an organization owned by the state or government

• an organization owned by private shareholders only

• an organization owned by shareholders who can trade their shares on a stock exchange

• any business that carries 'PLC' after its name

Which of the following is not classified as a social enterprise?

• Public-private partnerships

• Microfinance providers

• Charities

• Consultancy services

Microfinance providers

• Empower entrepreneurs of small businesses

• Grant financial support to female entrepreneurs only

• Are a type of not-for-profit social enterprise

• Charge extremely high rates of interest for entrepreneurs who cannot use commercial banks

What is the term used to describe what an organization exists for and what it intends to achieve?

• Business plan

• Business objectives

• Mission statement

• Vision statement