Business activity Assessment - Year 10

What is opportunity cost?

• The total monetary cost of starting a business

• The next best alternative given up when making a choice

• The cost of raw materials in production

• The profit earned from a business venture

Which of the following best describes added value?

• The original price of a product before taxes

• The total revenue earned from sales

• The difference between the cost of inputs and the price customers pay

• The amount of tax added to a product's price

A carpenter transforms wood into furniture. This business operates in which sector?

• Primary sector

• Secondary sector

• Quaternary sector

• Service sector

Which of the following is NOT a factor of production?

• Land

• Profit

• Labor

• Capital

Which example represents a primary sector activity?

• A restaurant preparing meals

• Mining for coal

• Teaching in a school

• Manufacturing cars

What is the main characteristic of an entrepreneur?

• Always works for large corporations

• Takes calculated risks in business ventures

• Avoids innovation and change

• Only invests in established businesses

How can a business add value to raw materials?

• By storing them indefinitely

• By reducing the quality

• By processing them into finished goods

• By selling them immediately

Which of the following is a tertiary sector activity?

• Farming

• Oil extraction

• Financial consulting

• Furniture manufacturing

What distinguishes public sector businesses from private sector ones?

• Public sector businesses are owned and controlled by the government

• Public sector businesses never make profits

• Private sector businesses don't pay taxes

• Private sector businesses can't hire employees

Which characteristic is most important for entrepreneurial success?

• Having wealthy parents

• Being over 40 years old

• Innovation and creativity

• Avoiding all risks