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Nature and purpose of business

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

Economic Activities =

a)

Business + Profession

b)

Business + Employment

c)

Business + Employment

d)

Business + Profession + Employment

2.

The market share of Nokia phones in India has shrunk from 80% to 20%. Nokia faces business risk arising from

a)

Human Causes

b)

Economic causes

c)

Natural causes

d)

Other causes

3.

It is social unit of people that is structured and managed to meet a need or to pursue collective goals.

a)

Business

b)

Organization

4.

What is an activity of exchanging goods and services, for gaining profit?

a)

Business

b)

Organization

5.

Items that can be seen and touched are known as...

a)

Goods

b)

Services

6.

Someone who starts, operates and assumes the risk of a business is known as an...

a)

Investor

b)

Interest person

c)

Entrepreneur

d)

Business inventor

7.

________________the desire to make money.

a)

Opportunity

b)

Income

c)

Profit motive

8.

Motivation to start a business includes

a)

Opportunity to meet wants and needs of consumers

b)

Opportunity to increase competition in the marketplace

c)

Opportunity to make money in the marketplace

9.

Businesses are investment opportunities for individuals-future income

a)

True

b)

False

10.

The difference between the amount earned and the amount spent in buying, opearating, or producing something.

a)

Service

b)

Goods

c)

Profit

d)

Profit motive

11.

Things that are necessary for survival such as food, shelter, clothing and water.

a)

Wants

b)

Needs

c)

Goods

d)

Services

12.

Things that are not necessary for our survival but add pleasure and comfort to our lives such as TVs, candy bars, jewelry.

a)

Needs

b)

Wants

c)

Goods

d)

Services