BUSINESS 03.25 TRUE-FALSE 2

The economic problem refers to unlimited wants but limited resources, leading to scarcity.

• True

• False

A franchise is a business model where one company allows another to use its brand and sell its products.

• True

• False

The main reason businesses use division of labor is to increase efficiency by assigning workers specific tasks.

• True

• False

An example of capital as a factor of production is machinery used in manufacturing.

• True

• False

The major disadvantage of unlimited liability is that owners are responsible for all debts, even personal assets.

• True

• False

Specialization benefits a worker by helping them become highly skilled in a specific task.

• True

• False

An example of a business in the secondary sector is a car manufacturing company.

• True

• False

A key characteristic of a private sector business is that it is owned by private individuals or companies.

• True

• False

Profit is important for businesses because it helps them expand and invest in new resources.

• True

• False

The main reason for business growth through mergers is to increase market share and reduce competition.

• True

• False