Which of the following is NOT a reason for starting a business?

• To fulfill a business opportunity

• To provide a good or service to benefit others

• To avoid all forms of work

• To supply goods or services

Which of the following is considered a factor of production?

• Land

• Marketing

• Advertising

• Customer service

What is the term used to describe the cost of the next best alternative that is forgone when making a decision?

• Opportunity cost

• Fixed cost

• Variable cost

• Total cost

Which sector involves businesses that provide services rather than goods?

• Tertiary sector

• Primary sector

• Secondary sector

• Quaternary sector

Which of the following is a characteristic of an entrepreneur?

• Willingness to take a risk

• Prefers routine and avoids change

• Dislikes innovation

• Avoids responsibility

Which of the following best describes the dynamic nature of business?

• Businesses must adapt to changes in technology, economic situation, legislation, and environmental expectations.

• Businesses always remain the same over time.

• Businesses only focus on producing goods.

• Businesses never face competition.

A person wants to start a business to be their own boss and have flexible working hours. Which objective of an entrepreneur does this describe?

• To be their own boss and have flexible working hours

• To avoid all forms of responsibility

• To work for someone else

• To reduce innovation in the market

Which of the following best explains the difference between goods and services?

• Goods are tangible items, while services are intangible activities provided to customers.

• Goods are always more expensive than services.

• Services can be stored, but goods cannot.

• Goods are only produced by large businesses.

Why is it important for businesses to identify a gap in the market?

• To find opportunities that are not currently being met by existing businesses

• To copy competitors exactly

• To avoid innovation

• To reduce their customer base

Which of the following is NOT a type of business ownership mentioned in the material?

• Sole traders

• Partnerships

• Franchises

• Public limited companies (plc)