Grade 11 Business Studies Quiz

Which of the following is NOT a factor of production?

• Land

• Capital

• Profit

• Labour

Added value is best defined as:

• The total revenue of a business.

• The difference between the cost of inputs and the selling price of outputs.

• The profit left after all taxes are paid.

• The increase in a company's market share.

An entrepreneur is best described as someone who:

• Works for a large corporation.

• Takes risks to start a new business venture.

• Manages government resources.

• Provides capital for others' businesses.

The primary reason most small businesses fail within the first few years is:

• Lack of government support

• Poor financial management and cash flow

• Too much competition

• Excessive profit

What is the key difference between an entrepreneur and an intrapreneur?

• An intrapreneur takes more financial risk.

• An entrepreneur works within an existing organization.

• An intrapreneur uses company resources to innovate.

• An entrepreneur is always an employee.

A business can increase its added value by:

• Increasing the cost of its raw materials.

• Reducing its selling price.

• Branding its products effectively.

• Paying lower wages to its staff.

"Enterprise" as a factor of production refers to:

• The physical premises of a business.

• The risk-taking and decision-making skills of the entrepreneur.

• The money used to start a business.

• The raw materials used in production.

Which quality is LEAST important for a good entrepreneur?

• Risk aversion

• Innovation

• Resilience

• Passion

Capital, as a factor of production, includes:

• Natural resources like oil and water.

• The mental and physical efforts of people.

• Man-made resources like machinery and tools.

• The skills of the entrepreneur.

The formula for calculating added value is:

• Selling Price + Cost of Materials

• Selling Price - Cost of Bought-in Materials and Services

• Total Revenue - Total Profit

• Fixed Costs + Variable Costs