Element 1 Revision (1.1) 1.1.1 to.1.1.4 the_fundamentals Quiz

What is the primary role of a business in society?

• To make a profit solely

• To provide employment only

• To provide goods and services to meet consumer needs and wants

• To pay taxes

How do businesses contribute to the government's economic priorities?

• By competing with foreign goods

• By providing customer service

• By innovating products

• By paying taxes

Which factor of production involves human effort?

• Capital

• Labour

• Raw materials

• Entrepreneurship

What is one way businesses can enhance the economic security of a country?

• By reducing prices

• By importing more goods

• By competing with foreign goods

• By providing customer service

What is the purpose of accounting in business?

• To advertise products

• To maintain accurate financial records

• To increase production

• To manage employees

Which of the following is a characteristic of a competitive market economy?

• Government ownership of all businesses

• Limited government intervention

• High prices for all products

• Monopolies

How do wholesalers contribute to the supply chain?

• By manufacturing goods

• By selling directly to consumers

• By bulk purchasing from manufacturers

• By setting prices

Which sector is characterised by government ownership and control?

• Private sector

• Retail sector

• Public sector

What is one of the roles of entrepreneurship in a business?

• Performing audits

• Identifying gaps in the market

• Maintaining financial records

• Providing customer service

What is the function of management in a business?

• To control the factors of production

• To set government policies

• To innovate products

• To purchase raw materials