Introduction to Business

Which of the following statements best describes a business?

• An entity that donates money to a charitable organisation.

• An organisation that strives to make a profit by selling goods/services.

• An organisation that works to enhance social welfare.

• An institution that may or may not strive to maximize profit.

Which of the following is NOT a component of management?

• Organizing

• Directing

• Controlling

• Experiencing

Which of the following is a characteristic of a product?

• Separable

• Intangible

• Offered by an organisation

• Inseparable

Which of the following is not a characteristic of a service?

• Non perishable

• Intangible

• Manufactured by an organisation

• Inseparable

Which of the following formulas is correct?

• Revenue = cost + profit

• Cost = profit + revenue

• Profit = revenue - cost

• Profit = revenue - liabilities

A ______________ organisation is an organisation that exists to achieve a goal other than the usual business goal of making a profit

• social

• government

• business

• not-for-profit

Which of the following is a factor of production?

• Enterprise

• Land

• Capital

• All of the above

Which of the following is not an external stakeholder?

• Managers

• Suppliers

• Society

• Government

Which of the following is not an advantage of sole proprietorship?

• All earnings go to the owner

• Easy organisation

• Additional funding

• Lower taxes

Which of the following is an advantage of a limited liability company?

• Complete control

• Separate legal entity

• Lower taxes

• Easy organisation