8th Grade Business Basics Assessment

What is entrepreneurship?

• Working for a large corporation

• Managing a government agency

• Starting and running your own business

• Investing in the stock market

Which of the following is NOT a factor to consider when setting up a market?

• Target audience

• Location

• Your favorite color

• Competition

What is an example of an ICT tool used for marketing?

• Social media platforms

• Fax machines

• Rotary phones

• Typewriters

When budgeting for a business, which of the following is most important to consider?

• The CEO's salary

• Office decorations

• Income and expenses

• Competitor's budgets

Which is an advantage of cash transactions?

• Improved cash flow

• Increased debt

• Delayed payments

• Higher risk of theft

What is a disadvantage of credit transactions?

• Immediate payment

• Risk of non-payment

• No interest charges

• Simplified bookkeeping

Which of the following is an example of an asset?

• A loan from the bank

• Money owed to suppliers

• Equipment owned by the business

• Unpaid employee wages

What is a liability in business terms?

• A valuable piece of property

• Money owed by the business

• Profit from sales

• Inventory in stock

Why is budgeting important for a business?

• It impresses investors

• It makes financial planning easier

• It guarantees success

• It eliminates all financial risks

Which of the following is an ethical practice in budgeting?

• Overestimating profits

• Hiding expenses

• Accurate reporting of all financial information

• Underreporting income to avoid taxes