Principles of Business - Recap Quiz 2

Which are the objectives of a business for society? (You may select more than one)

• For the overall good of society

• Generate profit and personal satisfaction

• Provide economic goods and services

• Satisfy the wants of the people

• Provide work and wealth to its members

Answer explanation

From society’s viewpoint, business should provide the economic goods and services that satisfy the wants and needs of the people. Profit is a motivator for the businessman to produce economic goods and services. Profit also motivates him to improve his efficiency and output. Business contributes to the overall good of society by providing work and wealth to its members.

Which of these is/are example(s) of "Strength" in a SWOT analysis? (You may select more than one)

• Dominating presence in local market

• Loyal employees

• Changing technologies

• Strong company brand

• Excellent customer service

Answer explanation

Strengths

- Things that the company does especially well. (E.g. Unique selling point, experienced staff, good location, reliable supplier)

- A strength usually gives the company a comparative advantage in the marketplace.

Which is true about the law of demand?

• The higher the price, the lower the quantity supplied

• The higher the price, the higher the quantity demanded

• The higher the price, the lower the quantity demanded

• The higher the price, the quantity remains unaffected

Answer explanation

The law of demand states that, if all other factors remain equal, the higher the price, the lower the quantity demanded.

If you took up a 5-year bank loan of $100,000, and the stipulated simple interest rate is 3% per annum, how much would you have paid in total after 2 years?

(a)  

Answer explanation

Total paid after 1 year (interest for 1st year)

= $100,000 x 3%

= $3,000

Total paid after 2 years (interest for 1st & 2nd year)

= $3,000 x 2

= $6,000

Only a country's government can set the interest rate of the country.

• True

• False

Answer explanation

The interest rate charged by banks is determined by a number of factors, such as the state of the economy.

A country's central bank or government sets the interest rate.

Which of these is/are characteristics of worms (cyberthreat)? (You may select more than one)

• Encrypt files in one's computer

• Self-replicating

• Do not need human intervention to spread

• Used for hacking and identity theft

• Slimy and live underground

Answer explanation

A worm is self-replicating and spreads without end-user action, causing real devastation. Worms spread by exploiting other files and programs to do the spreading work. When one person in an organisation opens an email that contains a worm, the entire network in the organisation could get infected in just a few minutes.

What is the name of the cyber threat application that displays unwanted advertisements on your devices?

(a)  

Answer explanation

Adware are attempts to expose users to unwanted, potentially malicious advertising. These ads most likely end up infecting a user’s device. There are adware programs that redirect a user, during browser searches, to look-alike web pages that have promotions of other products.

Which of the following is/are examples of demographics? (You may select more than one)

• Age

• Gender

• Household income

• Size of family

• Where they live

Answer explanation

Demographics segment people according to facts about them as members of the population e.g. gender, age, size of their family, their income, where they live. A rising population may mean more demand for the goods and services needed. If there are more males, there would be more products and services catered to the masculine population.

During a recession, the government will raise the interest rate.

• True

• False

Answer explanation

During a recession, the government will lower the interest rate. This will deter people from saving and encourage spending. Low interest rate would mean the cost of debt/borrowing will be lower and hence, helps firms to tide-over the period of economic recession.

Which statutory board oversees the transformation of the local workforce and industry to meet economic challenges?

(a)  

Answer explanation

Workforce Singapore (WSG) is a statutory board under the Ministry of Manpower (MOM). It oversees the transformation of the local workforce and industry to meet economic challenges.

WSG will promote the development, competitiveness, inclusiveness, and employability of all levels of the workforce. This will ensure that all sectors of the economy are supported by a strong, inclusive Singaporean core.

WSG will also address the needs of business owners and companies – it will help businesses create quality jobs, develop a manpower pipeline to support industry growth, and match the right people to the right jobs.