The Business Landscape - Key Concept Review

What is the main goal of a business?

• To provide free goods and services

• To meet people’s needs and wants while making money

• To collect taxes from customers

• To prevent competition

What is economics the study of?

• How people make choices with unlimited resources

• How people make choices with limited resources

• How businesses avoid making choices

• How people trade without using money

What is the difference between needs and wants?

• A) Needs are things people enjoy, and wants are things required to survive

• B) Needs are required to survive, and wants are things people would like to have

• C) Needs are always free, while wants cost money

• D) Wants are more important than needs

Which of the following is an example of a service?

• A) A video game

• B) A smartphone

• C) A doctor’s appointment

• D) A pair of shoes

What is a resource?

• A) Anything used to produce a good or service

• B) Only money that businesses earn

• C) A product that is sold to customers

• D) A type of tax

What is an entrepreneur?

• Someone who works only for a large company

• Someone who takes a risk to start a business

• Someone who only works for non-profit organizations

• Someone who only sells products online

Why do some people choose to work for others instead of starting their own business?

• It is easier and offers a steady income

• Entrepreneurs do not earn money

• Starting a business is free and risk-free

• There are no benefits to working for a company

What is one advantage of being an entrepreneur?

• Having complete control and flexibility

• Avoiding all financial risks

• Working fewer hours than employees

• Never facing competition

Which of the following is an advantage of a sole proprietorship?

• The owner has unlimited liability

• It is easy and inexpensive to start

• It requires many partners

• The business must follow strict corporate rules

What is a disadvantage of a partnership?

• Partners must always agree on everything

• It is difficult to raise money

• Any partner can be held responsible for all debts

• It is impossible to make a profit