Introduction to Principles of Business

An initiative or business activity is called an

The act of combining all other factors of production to provide goods and services is called

The network of economic agents involved in production, distribution and consumption is know as an

A substance or product that can be sold in bulk and is usually an input for other production to take place is called a

This is known as the focus of effort on a particular task and becoming expert at it

Man as an economic animal providing for himself in a subsistence economy was know as

A Lack of double coincidence of wants means

• People could only exchange with family members

• People cannot exchange with anyone they wanted

• You could only exchange if both parties had what the other wanted

A characteristic of money is that it must be

• Crisp, new bills

• In limited supply

• Supplied by the government

The term legal tender means

• The commodity is an acceptable form of payment according to the law

• The law must be accommodating

• It is legal to be soft

A sole trader business has unlimited liability

• True

• False