business theme 1

Question 1

What is the primary objective of a business?

Answer 1

To maximize profits.

Question 2

True or False: A sole trader has limited liability.

Answer 2

False.

Question 3

Fill in the blank: The four factors of production are land, labor, capital, and ______.

Answer 3

enterprise.

Question 4

What is the difference between a need and a want?

Answer 4

A need is something essential for survival, while a want is a desire for something that is not necessary.

Question 5

What is market segmentation?

Answer 5

The process of dividing a market into distinct groups of buyers with different needs or characteristics.

Question 6

What does the acronym SMART stand for in goal setting?

Answer 6

Specific, Measurable, Achievable, Relevant, Time-bound.

Question 7

True or False: Limited companies can raise capital by selling shares.

Answer 7

True.

Question 8

What is a business plan?

Answer 8

A document that outlines the goals, strategies, and financial projections of a business.

Question 9

What is the role of an entrepreneur?

Answer 9

To start and manage a business, taking on financial risks in the hope of profit.

Question 10

What is the purpose of market research?

Answer 10

To gather information about consumers’ needs and preferences.

Question 11

Fill in the blank: A _______ is a legal document that establishes a company as a separate entity.

Answer 11

certificate of incorporation.

Question 12

What is a target market?

Answer 12

A specific group of consumers at which a company aims its products and services.

Question 13

True or False: The primary sector of the economy involves manufacturing.

Answer 13

False.

Question 14

What does SWOT stand for?

Answer 14

Strengths, Weaknesses, Opportunities, Threats.

Question 15

What is the significance of cash flow in a business?

Answer 15

It determines the liquidity and operational efficiency of the business.

Question 16

What is a competitive advantage?

Answer 16

A condition that allows a company to produce goods or services better or more cheaply than its rivals.

Question 17

Fill in the blank: A _______ is a visual representation of a company’s hierarchy.

Answer 17

organigram.

Question 18

What is the function of the marketing mix?

Answer 18

To combine various elements to effectively market a product.

Question 19

True or False: Primary research involves collecting data that already exists.

Answer 19

False.

Question 20

What is the purpose of pricing strategies?

Answer 20

To determine how to price products to maximize profits while remaining competitive.

Question 21

What is a business’s unique selling proposition (USP)?

Answer 21

A feature that makes a product stand out from its competitors.

Question 22

Fill in the blank: _______ is the process of designing, creating, and marketing a new product.

Answer 22

Product development.

Question 23

What is the importance of customer service?

Answer 23

It helps build customer loyalty and satisfaction.

Question 24

What does PEST analysis stand for?

Answer 24

Political, Economic, Social, Technological.

Question 25

True or False: Gross profit is calculated by subtracting total expenses from total revenue.

Answer 25

False.

Question 26

What is a business's mission statement?

Answer 26

A brief description of the organization's fundamental purpose.

Question 27

What is the difference between fixed costs and variable costs?

Answer 27

Fixed costs do not change with production levels, while variable costs do.

Question 28

Fill in the blank: The _______ is the total income from sales before any costs are deducted.

Answer 28

revenue.

Question 29

What is brand loyalty?

Answer 29

The tendency of consumers to continue buying the same brand's products.

Question 30

What is the purpose of a financial statement?

Answer 30

To provide an overview of a company's financial performance and position.

Question 31

True or False: A monopoly exists when a single company dominates the market.

Answer 31

True.

Question 32

What is the role of human resources in a business?

Answer 32

To manage the recruitment, training, and welfare of employees.

Question 33

What is the definition of corporate social responsibility (CSR)?

Answer 33

The practice of conducting business in an ethical manner and considering the social and environmental impacts.

Question 34

What does the term 'economies of scale' refer to?

Answer 34

The cost advantages that a business obtains due to the scale of operation.

Question 35

Fill in the blank: The _______ is the point at which total revenue equals total costs.

Answer 35

break-even point.

Question 36

What is the significance of a supply chain?

Answer 36

It encompasses all the steps involved in getting a product from production to the customer.

Question 37

What is a stakeholder?

Answer 37

Any individual or group that has an interest in the success of a business.

Question 38

True or False: A business can only have one target market.

Answer 38

False.

Question 39

What is the purpose of advertising?

Answer 39

To promote products or services to potential customers.

Question 40

Fill in the blank: The _______ is the group of people who are potential consumers of a product.

Answer 40

market.