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Business Activity Quiz

Total questions: 28

Worksheet time: 14mins

Name
Class
Date
1.

What are goods or services that are essential for living called?

a)

Needs

b)

Scarcity

c)

Wants

d)

Opportunity Cost

2.

What is the economic problem of having unlimited wants but not enough products?

a)

Opportunity Cost

b)

Division of Labour

c)

Scarcity

d)

Specialization

3.

Which of the following is NOT one of the four factors of production?

a)

Labour

b)

Land

c)

Capital

d)

Technology

4.

What is the term for the benefit that must be given up to achieve something else?

a)

Added Value

b)

Opportunity Cost

c)

Specialization

d)

Division of Labour

5.

What is the advantage of specialization in production?

a)

Increased boredom

b)

Higher costs

c)

Decreased quality

d)

Increased efficiency

6.

What is the primary sector of the economy focused on?

a)

Extracting natural resources

b)

Retail

c)

Services

d)

Manufacturing

7.

What is the goal of businesses in the private sector?

a)

Job creation

b)

Service for all citizens

c)

Efficiency

d)

Profit

8.

What is a disadvantage of the public sector?

a)

Profit motive

b)

Job creation

c)

No competition

d)

High efficiency

9.

What is the process of selling public sector businesses to private sector called?

a)

Nationalization

b)

Privatization

c)

Acquisition

d)

Merger

10.

Which characteristic is NOT typical of successful entrepreneurs?

a)

Hard working

b)

Risk averse

c)

Creative

d)

Self-confident

11.

What is included in a business plan?

a)

Marketing strategies

b)

Customer feedback

c)

Products and services

d)

Employee salaries

12.

What is one reason governments support new businesses?

a)

To reduce competition

b)

To create jobs

c)

To increase taxes

d)

To control prices

13.

What is a common method of measuring the size of a business?

a)

Number of customers

b)

Value of output

c)

Brand reputation

d)

Market share

14.

What is a potential problem of business growth?

a)

Higher profits

b)

High costs of expansion

c)

Better status

d)

Increased control

15.

What type of integration occurs when two businesses in the same industry merge?

a)

Vertical integration

b)

Horizontal integration

c)

Joint venture

d)

Conglomerate merger

16.

What is a reason some businesses remain small?

a)

Large customer base

b)

High market demand

c)

Lack of competition

d)

Owner's objective

17.

What is a common reason for business failure?

a)

Strong competition

b)

High profits

c)

Effective communication

d)

Poor management

18.

What is the term for the difference between the selling price and the cost to produce a product?

a)

Opportunity Cost

b)

Added Value

c)

Scarcity

d)

Specialization

19.

What is the secondary sector focused on?

a)

Retailing products

b)

Extracting resources

c)

Providing services

d)

Manufacturing goods

20.

What is one disadvantage of division of labour?

a)

Higher quality products

b)

Reduced costs

c)

Increased efficiency

d)

Boredom among workers

21.

What is the goal of the public sector?

a)

Job reduction

b)

Profit

c)

Service for all citizens

d)

Market control

22.

What is a joint venture?

a)

A merger of two large companies

b)

A partnership for a new project

c)

A government-owned business

d)

A type of privatization

23.

What is backward vertical integration?

a)

Merging with a competitor

b)

Merging with a service provider

c)

Merging with a retailer

d)

Merging with a supplier

24.

What is one reason for de-industrialization?

a)

Higher demand for manufacturing

b)

Increased factory costs

c)

Government support

d)

Technological advancements

25.

What is the term for the number of workers available to make products?

a)

Labour

b)

Capital

c)

Land

d)

Enterprise

26.

What is the main objective of private sector businesses?

a)

Profit

b)

Service

c)

Job creation

d)

Community support

27.

What is one advantage of privatization?

a)

Increased government control

b)

Higher efficiency

c)

Lower competition

d)

Job security

28.

What is the term for the resources that are extracted from the earth?

a)

Capital

b)

Enterprise

c)

Land

d)

Labour