Business Mangagement Unit 1.1

What are the resources used in the production process collectively known as>

•     Capital resources

•    Factors of production

•    Raw materials

• Working capital

Answer explanation

The resources used in the production process collectively are known as Factors of production.

  Consumers are the people or business that

• Buy and use goods and services

• Buy goods and services

• Pays for a good or service with using it

• Use a good or service

Answer explanation

The correct choice is 'Buy and use goods and services' because consumers are individuals or businesses that purchase and utilize goods and services.

  Which of the following is not an example of primary production?

• Agriculture

• Coaching

• Fishing

• Mining

Answer explanation

Coaching is not an example of primary production because it involves providing guidance or training services, not the direct creation of goods or resources.

        The primary sector is the part of the economy that consists of

• Agriculture, fishing, and extractive industries value

• Businesses that have been recently set up

•      Organizations that provide value added services to their customers

•    Organizations that use extracted raw materials for production

Answer explanation

The primary sector includes agriculture, fishing, and extractive industries, which focus on raw material extraction and production.

    An entrepreneur is someone who

• Has managerial or supervisory role within an organization

•       Is a businessperson who manages production and output

•   Organizes factors of production an takes the risks of decision making

• Owns a business as a sole trader or as a primary owner

Answer explanation

An entrepreneur is someone who owns a business as a sole trader or as a primary owner, which is the correct choice among the given options.

Products are

• tangible/ physical items that businesses sells

• A service that business owneres exchage for money

• ideas that business owners develop to generate income

Answer explanation

Products are tangible/ physical items that businesses sell, making the correct choice the one stating 'tangible/ physical items that businesses sells'.

Services are

• intangilibe things that a business owner exchanges for income

• physical items that businesses sell to customers

• ideas and concepts that businesses create for exchange of income

Answer explanation

Services are intangible things that a business owner exchanges for income, making them the correct choice.

Which one is NOT an external opportunity for starting a business?

• Social change

• Legal change

• Technological change

• Environmental change

• Lack of govermental support

Answer explanation

The correct choice is Lack of govermental support because it is not an external opportunity for starting a business, unlike the other options which present opportunities for business growth.

Explain one situation in which ethics might affect a business decision.

Suggest two ways that technological change can affect the profits of a business.