Unit 1 AICE Business Test

What does a Customer do in a business context?

• Buys goods or services

• Always uses goods or services for personal use

• Organizes the production of goods

• Invests in other companies

Identify the term: A business that operates and has branches in multiple countries.

• Partnership

• Multinational Business

• International Business

• Local Business

Which of the following is considered part of the Factors of Production?

• Machinery

• Entrepreneur

• Labor

• Merger

True or False: Capital Goods are goods used by consumers for personal use.

• True

• False

What is the difference between a Franchisee and a Franchiser?

• The Franchisee owns the brand, while the Franchiser buys the business model

• The Franchiser owns the brand, while the Franchisee operates the business

• Both are the same

• Franchisee provides services to Franchiser

Which of these describes the process of Adding Value?

• Raising the price on products

• Improving a product's worth by enhancing its features or appearance

• Lowering production costs

• Outsourcing production

What does a Mission Statement describe?

• The specific long-term goals of a company

• The detailed budget of a company

• The overall purpose and values of a company

• The pricing strategy

Fill in the blank: An IPO stands for _________.

• Initial Public Offering

• International Purchase Order

• Internal Policy Outline

• Investment Portfolio Option

Which of the following best describes Opportunity Cost?

• The profit made from selling a product

• The resources used in production

• The cost of missing out on the next best alternative

• The money spent on purchasing materials

What type of business has Unlimited Liability?

• Sole Trader

• Public Limited Company

• Franchise

• Private Limited Company