Module 1: Nature of Business

What is the main activity of businesses?

• Production of goods and services

• Marketing and sales

• Financial management

• Human resources management

Fill in the blank: Profit is what remains after all business expenses have been deducted from the business sales _______.

• revenue

• income

• tax

• cost

Which of the following is a role of businesses?

• Reducing employment

• Offering a vast array of products

• Limiting consumer choice

• Decreasing innovation

Entrepreneurship and risk provide individuals with:

• financial security

• opportunities for innovation and growth

• a guaranteed success

• a stress-free life

Fill in the blank: Businesses provide income to business owners, shareholders, and _______.

• employees

• customers

• suppliers

• competitors

Which sector has driven employment growth according to the document?

• Large businesses

• SME sector

• Government sector

• Non-profit sector

What is the role of innovation in business?

• Innovation is the key driver of business growth and competitiveness.

• Innovation is a minor aspect of business strategy.

• Innovation is only important for technology companies.

• Innovation is irrelevant in modern business.

Fill in the blank: Consumers have freedom of choice and the opportunity to purchase products at _______ prices.

• competitive

• expensive

• fixed

• variable

The definition of income for an individual is:

• The total amount of money earned before taxes

• The total amount of money earned after taxes

• The total amount of money spent

• The total amount of money saved

Which of the following is a type of income that employees can receive?

• Wage

• Salary

• Bonus

• All of the above