Intro to Business Management Quiz

Which of the following best describes scarcity?

• Unlimited resources and unlimited wants

• Unlimited resources and limited wants

• Limited resources and unlimited wants

• Limited wants and unlimited resources

The main purpose of business activity is to:

• Maximize shareholder wealth only

• Satisfy customer needs and wants

• Increase the number of competitors

• Reduce employee workload

Which of the following is a primary sector activity?

• Manufacturing cars

• Growing wheat

• Selling clothes in a shop

• Providing bank loans

A tertiary sector business provides:

• Raw materials

• Manufactured goods

• Services

• Investment

Opportunity cost refers to:

• The total cost of production

• The cost of a resource in money terms

• The value of the next best alternative forgone

• The profit made from selling a product

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

• Limited liability

• Single ownership with unlimited liability

• Shared ownership

• Publicly listed

A private limited company (Ltd) can:

• Sell shares to the general public

• Raise capital by selling shares privately to family/friends

• Only be owned by one person

• Operate as a non-profit organization

Which of the following is a non-profit social enterprise?

• Cooperative

• Charity

• Microfinance provider

• All of the above

Public sector organizations are primarily:

• Owned by private investors

• Non-profit

• Owned and controlled by the government

• Owned by shareholders

A partnership is best defined as:

• Owned by a single individual

• Owned by two or more individuals who share profits and losses

• A non-profit organization

• A public limited company