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WorksheetsBusiness Activity and Influences on Business
Total questions: 78
Worksheet time: 39mins
A good or service that people would like to have, but is not required for living is called
Want
Needs
Interest
Desire
A good or service that is essential for living is called
Want
Needs
Interest
Desire
Scarcity is the main economic problem. What is scarcity?
It is a situation that exists when there are unlimited wants and limited resources to produce the goods and services to satisfy those wants
the next best alternative forgone by choosing another item
is the physical and mental efforts put in by the workers in the production process
is the finance, machinery and equipment needed for the production of goods and services
Which of these is the best definition of the “Economic Problem”?
People do not have enough money
There are not enough resources to satisfy people’s wants
There are too many items
There are too many factors of production
Which of the following is NOT a factor of production?
oil reserves
factory buildings
skilled labor
music CDs
Division of labor can be defined as
Workers specialize on just one task and become better at it
Workers become specialist in all jobs
All firms only have one worker
No workers are employed as machines always do all the work
One of the drawbacks to division of labor is that
output and efficiency falls
workers spend time on training to do several different jobs
workers can become bored through concentrating on one job
no machinery is used and this slows down production
Which of the following is NOT the example of Capital
Money
Building
Staff
Machinery
The next best alternative given up by choosing another item is the definition of?
Scarcity
Opportunity cost
Purchase
Business activity
Land, labour, capital and enterprise are collectively known as
Goods and services
Business cycle
Factors of production
Output
Which of the following is NOT a factor ofproduction?
oil reserves
factory buildings
skilled labour
a play station
What might an entrepreneur risk when starting up a business? You may find more than one option. Tick all that apply...
They might have invested their own personal savings
Relationships with family & friends might suffer due to long hours
Giving up a job / steady income
Getting rich if the business does well
Mineral resources are an example of the factor of production of_________
land
labor
capital
enterprise
Oil is an example of capital
True
False
Business are only owned by private individuals.
True
False
What are the examples of labor
Truck
manager
chef
lorry
What are the examples of capital? You may find more than one option
the cash money invested by the owner
wood
a manager of a business
trucks
What is an 'entrepreneur'?
A person in charge of the business strategy.
A person who lends the funds to set up a new business venture.
A person who organises, operates and takes the risk of a new business venture.
A group of people in charge of creating the business plan of a new venture.
What do you call a person, business or other organisation which buys goods or services from a business?
Seller
Customer
Employee
Employer
The main output of an airline is .........
A service
A good
The main output of a car manufacturer is ..........
Goods
Services
The difference between the selling price and the cost of production is known as
Added value
Revenue
Profit Margin
Mass consumption
In Division of Labour,each worker handles a specific task
True
False
What is Specialization?
Becoming an expert in a particular craft or skill
Production of more goods and services in a shorter time
Which of the following is a disadvantage of division of labour?
Increased Flexibility of workers
Reduced total cost of producing goods
Repetitive jobs
Specialization focuses on producing______________.
a variety of activities or products.
one particular kind of activity or product.
What causes boredom in division of labour?
Increased efficiency
Doing the same work
Less time required to complete work
What does "Jack of all Trades" mean?
a person named Jack
a person who trades with Jack
a person who does multiple tasks
a person who trades with everyone
How can you use division of labor at home?
each of my family members can make their own sandwich
mom can make sandwiches while we watch TV
mom gets the bread on plates, brother puts mayo, sister puts ham, dad puts cheese, and I close the sandwich and add chips
mom makes sandwiches, dad gets drinks, and siblings and I relax
Kathy, Sue, and Christina own a bakery. Each day all three women spend hours baking cakes, decorating cakes, and packaging cakes. Which economic concept would help them become more efficient?
Scarcity
Productivity
Specialization
Interdependence
The iPhone, designed in the United States and produced with the help of programmers in India and laborers in China and in the Democratic Republic of the Congo, was used to represent which of the following sociological concepts?
division of labor
mechanization
outsourcing
weak ties
Which of the following characteristics does a succesful entrepreneur have? Tick all answers that apply...
Creative / innovative
Willing to take calculated risks
Determined & resilient
Risk averse
Confident & good at communication
Which of the following is a benefit of being a Sole Trader?
The owner has limited liability
Finance can be raised by selling shares to friends and family
The owner has complete control over business decisions
Workload can be shared between the owners
Unlimited liability means
the business is closed down because of too much debt
the owners' personal possessions can be used to cover the firm's debts
the bank will refuse to give loans to the business
the business will struggle to attract investors
In a private limited company, which of the following is NOT true?
The shareholders have limited liability
The company can sell its shares to the public
People must be invited to buy shares in the business
The company must have at least one shareholder
In a public limited company, which of the following is NOT true?
The shareholders have limited liability
The company can sell its shares to the public
The company must have profits of at least $1million per year
The company sells their shares on the stock market
Which type of business ownership has ability to sell its shares to the public?
Sole trader
Partnership
Public Limited Company
Private Limited Company
Which type of business ownership is a separate legal entity from its owners?
Sole trader
Partnership
Unincorporated
Incorporated
How might businesses measure their success in achieving their aims and objectives?
By comparing profits to the previous year
By considering the opinions of stakeholders
By analysing their market shar\e
All of the options
What are "SMART" objectives in business?
Specific, Measurable, Achievable, Realistic, Time bound
Strategic, Motivating, Achievable, Relevant, Time-bound
Simple, Measurable, Attainable, Relevant, Timely
Specific, Monetary Achievable, Realistic, Time bound
What are the main types of stakeholders in a business?
Internal stakeholders and external stakeholders
Primary stakeholders and secondary stakeholders
Profit-oriented stakeholders and non-profit oriented stakeholders
Financial stakeholders and non-financial stakeholders
What is limited liability?
A business owner is not entitled to the profit of the business
A business owner is personally liable for all of the debts of the business
A business owner is only liable for the debts of the business up to the value of their investment
A business owner cannot lose any of their money invested in the business
Which of the following is an example of non-financial motivation?
A salary increase
A bonus
Being offered shares in a business
A sense of accomplishment and personal fulfillment from completing a task
Which of the following leadership styles involves a leader taking a hands-off approach and allowing their team to make decisions and solve problems on their own?
Autocratic
Laissez-faire
Transformational
Democratic
Which of the following leadership styles involves a leader taking a hands-on approach and making decisions for their team without seeking input from others?
Autocratic
Democratic
Laissez faire
Paternalistic
What is the main purpose of trade unions?
To encourage discrimination in the workplace
To provide workers with financial assistance during times of need
To represent the interests of workers and negotiate with employers on their behalf
To enhance the power of shareholders
What is a chain of command in an organization?
A way for employees to freely communicate with anyone within the company
A form of business ownership that includes unlimited liability
A hierarchy of authority and responsibility within the company
A system that only allows employees to communicate with their direct supervisor
a) A document outlining a company's mission
b) A description of a company's products or services
c) A detailed written document outlining the main details, purpose & aims of a business
d) A financial statement showing a company's revenue and expenses
Which of the following is a stakeholder in a business?
a) Government
b) Shareholders
c) Suppliers
d) All of the above
What of the following is NOT a reason businesses fail?
a) Poor planning
b) Liquidity problems
c) Economic influences
d) An increase in year on year sales growth
Which of the following is a common entrepreneurial characteristic?
a) Initiative
b) Irresponsible
c) Belligerent
d) Weak willed
