Revision Sheet Checkpoint 3

What distinguishes a need from a want?

• Needs are less important than wants

• Needs are essential for survival, while wants are desires

• Needs can be satisfied by any product

• Wants are more expensive than needs

Which of the following is an example of a good?

• Haircut

• Computer

• Consulting service

• Insurance policy

What are the factors of production?

• Land, labor, capital, and entrepreneurship

• Goods, services, and trade

• Demand, supply, and price

• Consumers, producers, and markets

In the chain of production, which stage comes first?

• Manufacturing

• Distributions

• Raw materials extraction

• Retailing

Which business structure involves one owner who receives all profits and is fully responsible for all debts?

• Corporation

• Partnership

• Sole trader

• Franchise

What defines a partnership?

• A single owner managing all operations

• Two or more people sharing profits and responsibilities

• A company owned by shareholders

• A business model allowing for multiple franchises

Which of the following best describes a franchise?

• A joint venture between two companies

• A business model where a franchisor sells the logo, and brand name to a franchisee.

• A type of sole proprietorship

• A non-profit organization

What is a joint venture?

• A permanent merger of two companies

• A temporary partnership for a specific project such as Apple and Hermes.

• A type of sole trader business

• A licensing agreement

Which of the following is NOT a characteristic of SMART objectives?

• Specific

• Measurable

• Arbitrary

• Time-bound

What does "unlimited liability" mean for business owners?

• Owners are not responsible for business debts.

• Business owners can only lose their business assets.

• The owner is responsible for all business debts; he may lose his house...

• The bank is responsible for business debts.