IB Business Management True or False Quiz

Businesses aim to satisfy the needs and wants of individuals and other organizations, such as by providing a service or manufacturing a product.

• True

• False

A business can be defined as a decision-making organization established to produce goods and/or provide services.

• True

• False

Capital, as a factor of production, refers to any non-natural (or manufactured) resource used in the production process.

• True

• False

The human resource department of a business is responsible for ensuring that the business has sufficient funds in order to conduct its daily operations.

• True

• False

In order to create goods and services, businesses need to combine human, financial, physical, and entrepreneurial resources.

• True

• False

The marketing function of a business is about advertising the goods and services of the organization.

• True

• False

The secondary sector of the economy involves the extraction of raw materials, farming, fishing, forestry and mining.

• True

• False

Adding value is the term used to describe the process of creating a product that is worth more than the total costs of the inputs used.

• True

• False

The tertiary sector of the economy comprises of businesses that provide services to individual customers and other businesses.

• True

• False

The marketing department is responsible for identifying and meeting the needs and wants of customers, usually for a profit.

• True

• False