IB UNIT 1 (part 1)

What is the primary role of a business?

• Maximize shareholder dividends
• Transform inputs into outputs
• Provide employment
• Generate tax revenue

Which of the following is an example of a tangible good?

• Insurance policy
• Haircut
• Smartphone
• Tax consultancy

What are the four factors of production?

• Land, labor, capital, enterprise
• Money, machines, materials, management
• Suppliers, customers, employees, owners
• Raw materials, factories, workers, profits

Value added is best defined as:

• The total revenue of a business
• The difference between input costs and selling price
• The profit after tax
• The wages paid to employees

Which business function is responsible for hiring and training employees?

• Finance
• Marketing
• Human Resources
• Operations

The primary sector includes businesses involved in:

• Manufacturing cars
• Extracting raw materials
• Providing banking services
• Developing software

Which sector is most dominant in economically developed countries?

• Primary
• Secondary
• Tertiary
• Quaternary

Entrepreneurship involves:

• Following strict corporate policies
• Taking risks to start a business
• Working for a government agency
• Managing an existing franchise

A key challenge for business start-ups is:

• High brand recognition
• Limited access to finance
• Established customer base
• Excess profits

A sole trader has:

• Limited liability
• Unlimited liability
• Shared ownership
• No legal identity