MOE term 1 BM quizz

What is the primary role of an entrepreneur?

• To manage existing businesses

• To invest in stocks

• To conduct market research

• To innovate and take risks

Answer explanation

The primary role of an entrepreneur is to innovate and take risks, as they create new products or services and navigate uncertainties in the market, distinguishing them from those who manage or invest in existing businesses.

Which sector involves the extraction of raw materials?

• Tertiary

• Quaternary

• Primary

• Secondary

Answer explanation

The primary sector involves the extraction of raw materials from the earth, such as agriculture, mining, and forestry. This distinguishes it from the secondary sector, which focuses on manufacturing, and the tertiary and quaternary sectors, which provide services.

What type of business entity is owned by the government?

• Private sector

• Public sector

• Sole trader

• Partnership

Answer explanation

A public sector business entity is owned and operated by the government, unlike private sector entities which are owned by individuals or companies. Therefore, the correct answer is 'Public sector'.

What is a common objective for businesses?

• To avoid market gaps

• To achieve ethical objectives

• To limit growth

• To reduce competition

Answer explanation

A common objective for businesses is to achieve ethical objectives, as this fosters trust, enhances reputation, and can lead to long-term success. The other options do not align with the primary goals of most businesses.

What does CSR stand for?

• Corporate Sales Revenue

• Corporate Social Responsibility

• Customer Service Relations

• Community Service Resources

Answer explanation

CSR stands for Corporate Social Responsibility, which refers to a company's commitment to conducting business in an ethical manner, considering its impact on society and the environment.

Which of the following is an internal stakeholder?

• Investors

• Employees

• Suppliers

• Customers

Answer explanation

Employees are considered internal stakeholders as they are part of the organization and directly involved in its operations. In contrast, investors, suppliers, and customers are external stakeholders.

What is the term for a company's average costs decreasing as it grows?

• Capital investment

• Market saturation

• Economies of scale

• Diseconomies of scale

Answer explanation

The term for a company's average costs decreasing as it grows is 'economies of scale.' This concept refers to the cost advantages that a business obtains due to expansion, leading to lower per-unit costs.

What is a reason for businesses to grow?

• Reduced costs

• Decreased competition

• Limited product range

• Increased market share

Answer explanation

Increased market share is a key reason for business growth, as it allows companies to reach more customers, enhance brand recognition, and improve profitability. This contrasts with reduced costs or limited product range, which do not directly drive growth.

What is a characteristic of non-profit social enterprises?

• They are publicly traded

• They aim to maximize profits

• They are owned by shareholders

• They operate for a cause

Answer explanation

Non-profit social enterprises focus on social causes rather than profit maximization. They operate to address societal issues, making 'They operate for a cause' the correct characteristic.

Which of the following is an external growth method?

• Internal expansion

• Mergers and acquisitions

• Cost-cutting

• Market research

Answer explanation

Mergers and acquisitions are external growth methods as they involve a company expanding by combining with or purchasing other businesses, unlike internal expansion, which focuses on growth from within.