Business 13/11/24

Which of the following best describes the primary purpose of business activity?

• To create employment

• To add value to resources

• To provide leisure activities

• To increase national wealth

The term "factors of production" refers to:

• Raw materials used in production

• Inputs such as land, labor, capital, and enterprise

• The methods used in manufacturing

• Ways of adding value to goods

What is "adding value" in a business context?

• Selling goods at a higher price than the cost of production

• Using only high-quality raw materials

• Increasing production output

• Providing goods and services at low prices

Opportunity cost can best be described as:

• The cost of raw materials

• The benefit foregone from not choosing the next best alternative

• The expenses involved in business activities

• The process of choosing between investment options

Which of the following is NOT a factor of production?

• Land

• Profit

• Labour

• Capital

Why is the business environment considered "dynamic"?

• Businesses constantly change their products and services

• Market conditions, consumer preferences, and technology continuously evolve

• Businesses work in isolation from each other

• Businesses have stable and unchanging surroundings

Which factor is most likely to lead to business failure?

• High customer loyalty

• Lack of access to adequate finance

• High levels of employee motivation

• Effective marketing strategies

A local business operates:

• Within a single town or community

• In multiple cities across a country

• Globally

• Across various countries but with a small customer base

A multinational company:

• Operates in multiple countries

• Operates only in one country

• Serves only a national customer base

• Operates without a profit motive

Which of the following is a quality often associated with successful entrepreneurs?

• High dependency on others

• Inability to take risks

• Innovation and determination

• Lack of leadership skills