1.1 The fundamentals and principles of business Quiz

What is the primary role of a business in society?

• To create art

• To provide goods and services

• To entertain people

• To manage wildlife

How do businesses contribute to government priorities?

• By lobbying politicians

• By paying taxes

• By hosting events

• By advertising

What is one way businesses can enhance the economic security of a country?

• By reducing prices

• By importing goods

• By investing in local production

• By outsourcing jobs

Which factor of production involves natural resources?

• Labour

• Capital

• Raw materials (land)

• Entrepreneurship

What is the function of management in a business?

• To entertain employees

• To control factors of production

• To write novels

• To decorate offices

What is financial prudence in business?

• Spending as much as possible

• Ignoring budgets

• Setting and monitoring budgets

• Avoiding financial reports

What is a characteristic of a competitive market economy?

• Many buyers and sellers

• Single government-run business

• Monopolistic control

• No private ownership

How do wholesalers interact with manufacturers and retailers?

• By selling directly to consumers

• By producing goods

• By buying in bulk from manufacturers and selling in smaller quantities to retailers

What is one role of accounting businesses?

• Maintaining accurate financial records

• Designing marketing campaigns

• Hiring employees

• Producing goods

What does auditing involve?

• Writing business plans

• Reviewing financial statements for accuracy

• Developing new products

• Managing human resources