Understanding Needs and Business Concepts

Which of the following best defines a 'need'?

• A new smartphone

• Water for drinking

• Designer trainers

• Wi-Fi connection

Which of the following is a need rather than a want?

• Smartphone

• Designer shoes

• Clean water

• Laptop

Which of the following is an example of a service sector job?

• Coal miner

• Car factory worker

• Bank teller

• Farmer

What is one main risk an entrepreneur faces when starting a business?

• Job promotion

• Guaranteed profit

• Losing personal savings

• Increased salary

Which of the following is a characteristic of a sole trader?

• Shared liability

• Limited liability

• Owned by shareholders

• Makes all decisions independently

Which of the following is an example of inorganic growth?

• Hiring more staff

• Merging with a competitor

• Buying new equipment

• Opening a new branch

Which of the following is most likely an objective for a new small business?

• Enter international markets

• Maximise profits immediately

• Survival

• Become a monopoly

Which stakeholder is mainly interested in job security and fair pay?

• Customers

• Owners

• Employees

• Government

Which of these is an external factor affecting a business?

• Its pricing strategy

• Staff training programme

• Customer income levels

• Product design

What is likely to happen when unemployment rises?

• Businesses struggle to hire staff

• Consumers spend more

• Consumers spend less

• Interest rates drop