Ch.1 Business Activity

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 factors of production.

Which of the following is NOT a factor ofproduction?

• oil reserves
• factory buildings
• skilled labour
• music CDs

Division of labour can be defined as:

• Workers specialise 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 labour 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.

All of the following are common business objectives (aims) except:

• to grow
• to pay taxes
• to survive
• to make profits

Which of the following is NOT one of the benefits of business growth?

• Sales will increase.
• Market share will probably rise.
• The business will probably become more secure.
• Management will have less work to do.

Which stakeholders in a business are paid a salary by the business and lead and direct it?

• the government
• the workers
• the consumers
• the managers

The main objective of a newly formed business is most likely to be:

• survival
• maximum profit
• rapid growth
• providing a service to the community