Cambridge Role of Business

Which of these is the best definition of business ethics?

• Fair conduct within the business

  environment

• The process whereby managers are

  responsible to a particular group

  affected by the operations of the

  business

• The legal regulations that owners,

  employers and managers are

  expected to follow

• What is seen as right or wrong for

  a business based on the values of

  management, employees and the

  community

Annie has taken an active interest in the growing health-food industry. She decides to open a health-food store in her local neighbourhood shopping centre based on her ideas for marketing low-sugar foods. In business terms, what would Annie be known as?

• A manager

• An Entrepreneur

• A Business operator

• An Employee

Which of the following best describes the concept of a business?

• An organisation that operates

  to serve the interests of the

  community

• An organisation that is developed

  to achieve a nancial return for its

  investors

• An organisation that provides

  various goods and/or services to

  cater to the needs and wants of the

  community

• An organisation that is owned and

  operated by the government to

  provide essential services to the

  community

Which of the following is an important motive for people to invest their funds in a

business with the aim of achieving an increase in its value?

• Employment

• Wealth creation

• Innovation

• Entrepreneurship

What is the name given to the process of combining a range of inputs to develop an

output?

• Value chain analysis

• Value adding

• Value benefit analysis

• Value creation

How does increased competition in the business environment benet consumers?

• Through greater choice between

  the goods and services offered by

  businesses

• By providing increased employment

  opportunities

• Through an improvement in quality

  of life and standard of living

• By developing improved features in

  the goods and services produced

An Australian pharmaceutical company has released medication that would assist in the

treatment of arthritis. This is an example of which of the following business roles?

• Wealth creation

• Choice

• Quality of life

• Employment

X-Part Plastics Pty Ltd has developed a new form of production that would improve the

quality of its plastics. Which of the following business roles is identified here?

• Entrepreneurship

• Quality of life

• Employment

• Innovation

Not all businesses achieve profitability within their first year of trading. What would be an

important reason for this?

• The low number of competitors in

  the marketplace

• The costs of establishing the

  business, resulting in a delay in

  achieving a return

• The skills and training of the

  entrepreneur

• The location of the business

A company’s decision to release a new range of foods aimed at higher-end consumers

would be seeking to fulfil which of the following roles?

• Choice

• Profit

• Quality of life

• Employment