The fundamentals and principles of business 1.1.1 - 1.1.3

Which of the following is NOT a role of business in society?

• Providing goods and services

• Contributing towards government's priorities

• Avoid paying taxes

• Enhancing economic security

What is the purpose of business activity?

• To provide goods and services at any cost

• To make a loss

• To supply goods and services to meet consumer demands and make a profit

• To harm consumers

Which of the following is NOT a factor of production?

• Labour

• Capital

• Technology

• Raw materials

What is the role of entrepreneurship in a business?

• Reducing profitability

• Avoiding risks

• Creating a competitive edge

• Avoiding innovation

What are the characteristics of a competitive market economy?

• Few buyers and sellers

• Strong government intervention

• Private ownership of factors of production

How does the relationship between manufacturing, wholesalers, and retailers work?

• Manufacturers buy from retailers

• Retailers buy from manufacturers

• Wholesalers sell directly to consumers

• Retailers produce their own goods

What are the characteristics of private sector organisations?

• Government ownership

• Limited financial resources

• Private ownership

• Limited competition

What is the role of accounting businesses in supporting the role of business in society?

• Operating the business

• Auditing financial statements

• Designing marketing strategies

• Handling customer complaints

What is the main function of maintaining accurate financial records in business?

• Complying with tax laws

• Tracking business expenses

• Managing employee salaries

• Recording business activities

How does entrepreneurship contribute to business growth?

• Avoiding risks

• Creating new products

• Minimising competition

• Ignoring market demands