Business Essentials

A(n) _________ is someone who sets up a new business to make a profit.

• monopoly

• corporation

• entrepreneur

• anarchist

What is the primary purpose of a business?

• To provide goods and services

• To employ people

• To pay taxes

• To compete with other businesses

Which of the following is a key characteristic of a sole proprietorship?

• Limited liability

• Owned by shareholders

• Single owner

• Double taxation

What is the role of a business plan?

• To secure funding

• To hire employees

• To pay taxes

• To advertise products

Which economic system is characterized by private ownership and free markets?

• Socialism

• Communism

• Capitalism

• Feudalism

What is a stakeholder in a business context?

• A person who owns shares

• A person who has an interest in the business

• A person who works for the business

• A person who competes with the business

Which of the following is a benefit of corporate social responsibility?

• Increased taxes

• Improved public image

• Higher production costs

• Reduced employee morale

What is the primary function of human resources in a business?

• To manage financial accounts

• To oversee marketing strategies

• To recruit and manage employees

• To develop new products

Which of the following is an example of a fixed cost for a business?

• Raw materials

• Employee wages

• Rent

• Utility bills

What is the significance of a SWOT analysis in business?

• To evaluate strengths, weaknesses, opportunities, and threats

• To determine pricing strategies

• To analyze market trends

• To assess employee performance