N5 BM Section 2 PP Qs UB/M/OP/HR only

What is the reward for land in the factors of production?

• Wages

• Interest

• Profit

• Rent

Which of the following is NOT a factor of production?

• Enterprise

• Capital

• Labour

• Investment

What is the reward for labour in the factors of production?

• Rent

• Wages

• Interest

• Profit

What is a non-durable good?

• A good that can be used multiple times

• A good that lasts a long time

• A single use good

• A good that is not essential

Which of the following sectors is owned by private individuals and investors?

• Private sector

• Public sector

• Third sector

• Voluntary sector

Which sector is funded by taxes?

• Private sector

• Public sector

• Third sector

• Voluntary sector

What is a common objective of both the third and public sector organisations?

• To make a profit

• To use public funds effectively

• To increase awareness/sales

• To be socially responsible

What is the main objective of private sector organisations?

• To provide a service

• To be socially responsible

• To make a profit

• To increase awareness

What is one of the advantages of setting up a business as a sole trader?

• The owner has to share the profits with others.

• The owner has unlimited liability.

• The owner gets to keep all the profits to themselves.

• It is difficult to take time off for holidays or if sick.

Which of the following is a disadvantage of operating as a sole trader?

• The owner gets to make all the decisions.

• Customers receive a more personal service.

• The owner has unlimited liability.

• It is very easy to set up.