What is a Business Quiz

What is a business?

• An organization that sells goods or services to customers and tries to maximize profit.

• A non-profit organization that relies on donations.

• A government agency that provides public services.

How do businesses typically try to maximize their profit?

• By increasing costs and reducing revenue.

• By minimizing costs and maximizing revenue.

• By providing goods or services for free.

What roles do businesses play in society according to the learning material?

• They only provide goods.

• They employ workers and provide goods and services.

• They solely focus on profit-making.

According to Adam Smith, what happens when a man pursues his own interest?

• It has no effect on society

• It leads to the downfall of the economy

• It promotes the interest of the society more effectively than if he tried to help society

What are fixed costs?

• Costs that increase with the amount produced or sold

• Costs that do not change based on how much a business produces or sells

• Costs that are directly linked to the amount sold or produced

Which of the following is an example of a variable cost?

• Rent

• Ingredients

• Storage

What is the constant decision that all businesses must make according to the slide?

• Whether to hire more employees or not

• Whether to continue or to close

• Whether to invest in new technology

What happens if a business can't cover fixed and variable costs in the long-run?

• They will continue producing

• They will stop producing

• They will increase production