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WorksheetsUnit 1.1 Nature of Business Activity
Total questions: 10
Worksheet time: 5mins
Name
Class
Date
1.
Added value is defined as:
a)
the diff erence between the cost of purchasing raw materials and the price the finished goods are sold for
b)
profit
c)
the difference between the cost of producing a product and the price for which it is sold
d)
the difference between the price of a product and the variable cost of its production.
2.
The machinery that is used by a business is an example of which factor of production?
a)
Land
b)
Capital
c)
Labour
d)
Entreprise
3.
An entrepreneur is someone who:
a)
is an employee of a business enterprise
b)
takes the risk of starting and managing a business venture
c)
works for the government to provide public services
d)
just provides capital to a business start-up.
4.
Which of the following is not a likely characteristic of a successful entrepreneur?
a)
willing to take risks
b)
committed and self-motivated
c)
innovative
d)
risk averse
5.
The main difficulty, identified by entrepreneurs in an International Labour
Organization survey, for new business start-ups was:
Organization survey, for new business start-ups was:
a)
finance
b)
identifying a market need
c)
marketing
d)
finding suitable employees
6.
Minimising fixed costs when choosing a location is important for which of the
following reasons?
following reasons?
a)
It reduces the break-even level of output
b)
It reduces the variable costs
c)
It ensures that the business is close to its potential market
d)
It encourages the entrepreneur to work from home
7.
Working capital may be defined as:
a)
the capital to run the business on a day-to-day basis
b)
machinery that is in working order
c)
the long-term capital of a business
d)
stocks and cash in a business
8.
All of the following will help ensure that there is sufficient working capital except:
a)
constructing a cash-flow forecast
b)
injecting sufficient capital at the beginning of a business venture
c)
offering generous credit terms to customers
d)
developing a good working relationship with the bank
9.
Business enterprise is claimed to bring all of the following benefits to an economy
with the exception of:
with the exception of:
a)
creation of employment
b)
a more dynamic and innovative economy
c)
economic growth
d)
a reduction in competition
10.
A mission statement is:
a)
a statement of the specific objectives a business has set itself
b)
an outline of the overall purpose of a business
c)
the financial plan of the business
d)
a description of the marketing strategy to be used by the business
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