Principles of Business Quiz

Which of the following BEST defines barter?

• Trading goods and services for money

• Trading goods and services without the use of money

• Selling goods only

• Buying services only

Which economic system is characterized by private ownership of resources?

• Command

• Socialist

• Capitalist

• Traditional

The MAIN purpose of business activity is to:

• maximize profit

• increase employment

• provide social services

• distribute goods equally

A partnership agreement typically includes:

• dividends

• stockholder rights

• roles and responsibilities of partners

• taxation rates

Which document outlines a company's business objectives and strategies?

• Invoice

• Balance sheet

• Business plan

• Receipt

What is limited liability?

• Owners are liable for all company debts

• Owners’ personal assets are protected from business debts

• Company must always declare bankruptcy when in debt

• Owners’ personal assets are always at risk

Which of these BEST describes marketing?

• Producing goods only

• Selling goods only

• Identifying and meeting consumer needs profitably

• Distributing goods

A Sole Trader business is owned by:

• shareholders

• government

• a single individual

• multiple partners

Which is NOT a factor of production?

• Land

• Labour

• Capital

• Profit

The term ‘market segmentation’ refers to:

• dividing the market into smaller groups

• merging two companies

• price setting

• producing goods in segments