Business 3/2025 2

What is an example of capital as a factor of production?

• A company's CEO

• A piece of farmland

• Machinery used in manufacturing

• Employees working in a factory

What is the major disadvantage of unlimited liability?

• Owners have no control over business decisions

• Owners are responsible for all debts, even personal assets

• Businesses cannot expand

• The business is controlled by the government

How does specialization benefit a worker?

• It allows them to do multiple jobs at once

• It helps them become highly skilled in a specific task

• It forces them to work longer hours

• It makes their job more diverse and less repetitive

What is an example of a business in the secondary sector?

• A car manufacturing company

• A school providing education

• A supermarket selling goods

• A farmer growing crops

Which of the following is a key characteristic of a private sector business?

• It is owned and operated by the government

• It provides free services to citizens

• It is owned by private individuals or companies

• It is responsible for making government policies

Why is profit important for businesses?

• It allows businesses to hire more workers

• It helps businesses expand and invest in new resources

• It guarantees success in the market

• It eliminates all competition

What is the main reason for business growth through mergers?

• To increase market share and reduce competition

• To lower wages for employees

• To allow businesses to operate in different countries

• To decrease productivity and efficiency

Which of the following best describes a stakeholder?

• A person who only benefits from business profits

• Any person or group with an interest in a business's success

• A government official monitoring businesses

• A customer who buys products

What is a common reason businesses fail?

• Lack of sufficient financial capital

• Too many employees

• Government ownership

• High levels of competition

What is the key role of the tertiary sector?

• Extracting raw materials from nature

• Producing goods from raw materials

• Providing services to individuals and businesses

• Managing government budgets