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MGT028 Exercise 1

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What is the purpose of organizational objectives?

a)

To prevent takeovers

b)

To provide direction to staff

c)

To set staff limits of authority

d)

To give a brief overview of ideas

2.

A vision statement focuses on tomorrow and what an organisation wants to ultimately become.

a)

True

b)

False

3.

A mission statement doesn't usually include

a)

what we do

b)

deadlines for when things will be done

c)

who we serve

d)

how we serve them

4.

What are the resources called that are needed to produce a good or service?

a)

Goods and services.

b)

Needs and wants.

c)

Factors of production.

d)

All of the above.

5.

What are natural resources?

a)

Animals

b)

Things from nature (not man-made)

c)

Tree

d)

All of the above

6.

What could be an example of capital?

a)

Buildings

b)

Machines

c)

Money

d)

All of the above

7.

Entrepreneur combines natural resources, labor, and capital to produce a good or service.

a)

True

b)

False

8.

Which one of the four factors of production does the picture show?

a)

Labor

b)

Natural Resources

c)

Capital

d)

Entrepreneur

9.

Literacy, education and special skills are examples of

a)

capital goods

b)

human capital

c)

natural resources

d)

entrepreneurship

10.

If a country has a poor education system and healthcare, this is a problem with

a)

capital goods

b)

human capital

c)

natural resources

d)

entrepreneurship

11.

Businesses have freedom to produce whatever they think consumers will buy

a)

Market

b)

Command

c)

Mixed

d)

Traditional

12.

What type of economy do most countries in the world have?

a)

Free economy

b)

Command economy

c)

Traditional economy

d)

Mixed economy

13.

______ is an economic system that is heavily influenced by the law of ______.

a)

Capitalism; Sustainable Development

b)

Communism; Class Warfare

c)

Capitalism; Supply & Demand

d)

Capitalism; Distribution

14.

My name is Bruce. I work for a large bank. My personal fortune is quite large. I own two mansions, sixteen cars, a luxury yacht and a utility belt.

a)

Bruce lives in a capitalist country

b)

Bruce lives in a communist country

15.

Sole Proprietorship is most suitable for

a)

Medium scale concerns

b)

Large scale concerns

c)

Small scale concerns

d)

None of the above

16.

Partnerships are small businesses and easy to grow.

a)

True

b)

False

17.

Sole proprietorship and partnership businesses can easily compete with bigger businesses.

a)

True

b)

False

18.

What is unlimited liability?

a)

It means you do have to pay the debts of the company you own

b)

It means you have no company debts

c)

It means you don't have to pay the debts of the company you own

19.

A business which has a huge amount of money invested in it is most likely to be a

a)

sole proprietorship

b)

cooperative

c)

partnership

d)

public limited company

20.

Which of the following is not considered for assessment of the standard of living?

a)

Per capita income

b)

Standard of education

c)

Quality health care

d)

Number of political party