Grade 7 Business Quiz

What is the primary purpose of business activity?

• To make a profit

• To make friends

• To have fun

• To lose money

Give an example of a business activity in the primary sector.

• Mining

• Retailing

• Farming

• Banking

Explain the difference between goods and services in the context of business activity.

• Goods are intangible products and services are tangible activities.

• Goods are tangible products and services are intangible activities.

• Goods and services are the same thing.

• Goods are activities and services are products.

What are the three main types of business activities?

• Hiring, Firing, Training

• Buying, Selling, Marketing

• Production, Distribution, Sales

• Operating, Investing, Financing

How does business activity contribute to the economy?

• By causing unemployment and reducing income

• By creating jobs, generating income, and providing goods and services.

• By depleting resources and reducing the availability of goods and services

• By increasing poverty and decreasing the standard of living

What is the difference between a sole trader and a partnership?

• Location of the business

• Type of products sold

• Number of owners

• Size of the business

Explain the concept of limited liability in business classification.

• Limited liability only applies to small businesses

• The owners or shareholders are not personally responsible for the company's debts or liabilities.

• Limited liability means the company has unlimited debts

• The owners are personally responsible for the company's debts

What are the advantages of a corporation as a form of business classification?

• Limited liability, inability to raise capital, temporary existence

• Unlimited liability, ability to raise capital, temporary existence

• Unlimited liability, inability to raise capital, temporary existence

• Limited liability, ability to raise capital, perpetual existence

What are the main characteristics of a small-scale enterprise?

• Medium size, moderate resources, operated by a large group

• Small size, limited resources, operated by a few individuals

• Unlimited size, unlimited resources, operated by a single individual

• Large size, abundant resources, operated by a large team

What are the challenges faced by a micro-enterprise in terms of growth and size?

• Limited access to capital, lack of resources, intense competition, and difficulty in expanding their customer base.

• Abundance of capital, lack of resources, low competition, and difficulty in expanding their customer base.

• Limited access to technology, lack of skilled employees, low demand for products, and easy expansion opportunities.

• Unlimited access to capital, abundance of resources, lack of competition, and ease in expanding their customer base.