Business Essentials

Customers cast economic votes every time they:

• buy a product

• visit a business

• give their opinion

• participate in a survey

What is the primary purpose of a business in a market economy?

• To create jobs

• To generate profit

• To support government policies

• To provide social services

Which of the following is a characteristic of a sole proprietorship?

• Limited liability

• Shared ownership

• Single owner

• Corporate tax

In a competitive market, what determines the price of goods?

• Government regulations

• Consumer demand and supply

• Business ethics

• Company reputation

What is a key advantage of a partnership over a sole proprietorship?

• Unlimited liability

• Shared decision-making

• Higher taxes

• Less flexibility

Which of the following is an example of a fixed cost for a business?

• Raw materials

• Employee wages

• Rent

• Utility bills

What is the role of a business plan?

• To secure funding

• To hire employees

• To set product prices

• To manage daily operations

Which economic system is characterized by private ownership and free markets?

• Communism

• Socialism

• Capitalism

• Feudalism

What is the main function of human resources in a business?

• Product development

• Financial planning

• Employee management

• Marketing strategies

Which of the following is a benefit of corporate social responsibility?

• Increased taxes

• Improved public image

• Higher production costs

• Reduced employee morale