Business 4/12/24

Which of the following is an example of a business adding value to its product?

• Lowering the cost of raw materials

• Reducing the retail price of goods

• Enhancing the design or packaging of the product

• Using fewer resources in production

Entrepreneurs are often described as being:

• Risk-averse

• Creative and innovative

• Dependent on others for ideas

• Resistant to change

Which of the following is NOT an opportunity cost for a business?

• Choosing to invest in new equipment instead of marketing

• Deciding to use profits for expansion rather than paying dividends

• Paying rent for business premises

• Choosing to hire one employee over another

The dynamic business environment includes all of the following factors EXCEPT:

• Changes in consumer preferences

• Technological advancements

• Global economic fluctuations

• Fixed governmental policies

Intrapreneurs are different from entrepreneurs in that:

• They create their own businesses

• They work within an existing organization to bring innovation

• They have no financial stake in the business

• They prefer stable, risk-free environments

A factor of production that involves human effort and skills is:

• Labour

• Land

• Capital

• Enterprise

Which of the following is a reason why businesses succeed?

• Low employee satisfaction

• Effective leadership and a clear vision

• Ignoring market trends

• Poor financial planning

The role of entrepreneurs in an economy includes:

• Running existing businesses with established products

• Creating new products and services to meet consumer needs

• Reducing competition in the market

• Minimizing risk by following government regulations

Which of the following is a characteristic of a multinational business?

• It operates in multiple countries and has subsidiaries abroad

• It serves customers within a single city

• It only operates through franchises

• It does not seek to expand beyond its home country

The opportunity cost of choosing to invest in new machinery instead of advertising would be:

• The expected profit from the machinery investment

• The increase in sales from a successful advertising campaign

• The risk of losing market share

• The cost of running the business