Business Studies chapter 1 &2 Quiz

What is the main aim of a business?

• To make a profit

• To provide free services

• To employ as many people as possible

• To compete with other businesses

Which of the following is considered a tangible good?

• A haircut

• A consultation

• A smartphone

• Advice from a lawyer

What does 'opportunity cost' mean in business?

• The cost of all options available

• The value of the next best alternative foregone

• The financial cost of production

• The cost of advertising

What are the four factors of production?

• Capital, Land, Labor, and Enterprise

• Goods, Services, Capital, and Labor

• Profit, Loss, Revenue, and Cost

• Land, Water, Air, and Fire

Which sector of the economy involves extraction of raw materials?

• Primary sector

• Secondary sector

• Tertiary sector

• Quaternary sector

What does 'specialization' mean in business terms?

• Doing all tasks in a business by oneself

• Concentrating on a specific task or product

• Diversifying into different markets

• Selling a wide range of products

What is meant by 'added value'?

• The total cost of production

• The difference between the selling price and the cost of raw materials

• The total profit made by a business

• The cost of labor and materials combined

Which of the following best describes a 'service'?

• An intangible activity provided to customers

• A product that can be physically touched

• A type of manufacturing process

• A legal document

Why might a business choose to specialize in a particular area?

• To reduce costs and increase efficiency

• To confuse competitors

• To reduce customer satisfaction

• To avoid government regulation

What are 'needs' in economic terms?

• Products desired by consumers

• Essential items required for survival

• Luxuries that people want to enjoy

• Services provided by the government