Which of the following best defines a need?

• Something that is essential for survival
• Something that it would be nice to have
• Something that makes life easier

Which of the following is a want?

• Food
• Warmth
• Games console

What are the roles an entrepreneur has in business activity?

• Showing initiative, being innovative, identifying opportunities, being a good employee
• Showing initiative, being innovative, identifying opportunities, organising resources

A drinks manufacturer sells water in different sized bottles. Which method of adding value is this an example of?

• Unique selling point
• Convenience
• Quality

A sandwich shop charges £1.95 for a sandwich that cost £0.75 to make. How much value is added by the sandwich shop?

• £1.95
• £0.75
• £1.20

A business uses packaging to give a product a premium image. Which method of adding value is it using?

• Design
• Quality
• Branding

What is the difference between goods and services?

• Goods are intangible products that you experience, services are tangible goods
• Goods are tangible products that you can touch, services are intangible experiences
• Goods and services are both tangible products

What best describes a public sector business?

• A business that is owned and run by individuals or shareholders
• A business that provides a mixture of goods and services
• A business that is owned and run by the government

Which is an example of a private sector business?

• A school
• A consumer electronics business
• The emergency services

What is the difference between an aim and an objective?

• An aim is the overall goal and objectives are the steps to achieve it
• An objective is the overall goal and aims are the steps to achieve it
• A aim is where the business wants to be in 10 years and the objectives are where the business wants to be in five years