Business Studies- Grade 10

What type of resources are land, oil, coal, water and gold?

• Natural resources

• Human resources

• Raw resources

• Capital

Answer explanation

Land, oil, coal, water, and gold are classified as natural resources due to their origin in the environment and their essential role in human activities.

What is a benefit of productivity?

• Value-added input is created

• Output is part of the production process

• Increased output with minimal input

• Cost per unit is low

Answer explanation

Productivity benefits include increased output with minimal input and low cost per unit.

What is the benefit of using a break-even chart

• Fixed costs may change over time

• Variable costs may change over time

• It can be used for management decision-making

• Assumes all output is sold

Answer explanation

The benefit of using a break-even chart is that it can be used for management decision-making and assumes all output is sold.

The difference between the selling price of a product and the cost of making it, is known as _____.

• Production

• Input

• Added value

• Natural resources

Answer explanation

The correct term for the difference between the selling price and the cost of making a product is 'Added value' as it represents the value added during the production process.

One of the responsibilities of the production department is to buy the necessary inputs for the production process. It also needs to check that the right amount of output is available. Which function of the production department is this?

• Production and planning

• Purchasing and stock control

• Design and technical support

• Operations

Answer explanation

The correct function of the production department described involves purchasing necessary inputs and checking stock levels, which falls under the category of Purchasing and stock control.

The production department uses computer systems to help the production process. Which business department helps with this?

• Finance

• Human Resources

• Information Technology (IT)

• Marketing

Answer explanation

The correct business department that helps with computer systems for the production process is Information Technology (IT). IT department is responsible for managing and maintaining the technology infrastructure used by other departments.

What happens when a business makes break-even?

• The business makes a loss

• The business makes a profit

• The business does not make a profit or a loss

• The business has added value

Answer explanation

When a business makes break-even, it means that it does not make a profit or a loss.

What type of business cost(s) remain the same regardless of output?

• Fixed costs

• Variable costs

• Total cost

• Average cost

Answer explanation

Fixed costs are business costs that remain constant regardless of the level of output. They do not change with production levels.

What are the total fixed costs? Phone line

2,000

Hourly wages

10,000

Raw materials

10,000

Salaries

3,000

• AED 10,000

• AED 15,000

• AED 25,000

• AED 30,000

Answer explanation

The total fixed costs are AED 10,000 as mentioned in the correct answer choice.

Gulf Snacks company made AED 200,000 in sales revenue last month. Total costs are AED 300,000.

 

Choose the correct statement.

• The business made a profit of AED 100,000

• The business made a loss of AED 100,000

• The business made a profit of AED 200,000

• The business made a loss of AED 200,000

Answer explanation

The correct statement is 'The business made a profit of AED 100,000' as indicated in the answer choices.