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Business Activity

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

Land, labour, capital and enterprise are collectively known as

a)

Goods and services

b)

Business cycle

c)

Factors of production

d)

Output

2.

Organisations run by central or local government are often referred to as

a)

Private sector

b)

Voluntary sector

c)

Public sector

d)

Mixed economy

3.

Which of these is the best definition of the ‘economic problem’?

a)

People do not have enough money.

b)

There are not enough resources to satisfy people’s wants.

c)

There are too many factors of production.

d)

The amount of something produced by a person, machine or industry.

4.

Which of the following is NOT a factor ofproduction?

a)

oil reserves

b)

factory buildings

c)

skilled labour

d)

a play station

5.

Which of the following characteristics does a successful entrepreneur have? You may find more than one option. Tick all answers that apply...

a)

Creative / innovative

b)

Willing to take calculated risks

c)

Determined & resilient

d)

Risk averse

e)

Confident & good at communication

6.

What might an entrepreneur risk when starting up a business? You may find more than one option. Tick all that apply...

a)

They might have invested their own personal savings

b)

Relationships with family & friends might suffer due to long hours

c)

Giving up a job / steady income

d)

Getting rich if the business does well

7.

Which of the following is a benefit of being a Sole Trader?

a)

The owner has limited liability

b)

Finance can be raised by selling shares to friends and family

c)

The owner has complete control over business decisions

d)

Workload can be shared between the owners

8.

Which of the following is an internal stakeholder of a business?

a)

The government

b)

A supplier

c)

A customer

d)

An employee

9.

Why is the government a stakeholder of most businesses?

a)

The government owns all businesses

b)

The government receives dividends from all businesses

c)

The government receives taxes from businesses

d)

The government wants businesses to fail so that unemployment rises

10.

________ is a good or service essential for living

a)

Want

b)

Desire

c)

Needs

d)

Factor of production

11.

Mineral resources are an example of the factor of production of_________

a)

land

b)

labor

c)

capital

d)

enterprise

12.

Oil is an example of capital

a)

True

b)

False

13.

Business are only owned by private individuals.

a)

True

b)

False

14.

All businesses combine the factors of production to make products that satisfy people's wants

a)

True

b)

False

15.

What are the factors of production for land

a)

wood

b)

chef

c)

factory

d)

farmers field

16.

What are the examples of labor

a)

Truck

b)

manager

c)

chef

d)

lorry

17.

What are the examples of capital? You may find more than one option

a)

the cash money invested by the owner

b)

wood

c)

a manager of a business

d)

trucks

18.
Which of the following is NOT a factor ofproduction?
a)
oil reserves
b)
factory buildings
c)
skilled labour
d)
music CDs
19.

What is an 'entrepreneur'?

a)

A person in charge of the business strategy.

b)

A person who lends the funds to set up a new business venture.

c)

A person who organises, operates and takes the risk of a new business venture.

d)

A group of people in charge of creating the business plan of a new venture.

20.
Interest Rates, inflation, import of goods from abroad, the strength of the pound, new competitors entering the market, and general trends in consumers’ buying habits and tastes are all examples of...
a)
Changes in the economy
b)
Changes in the external environment
c)
Changes in the market
d)

None of the above options