Business Studies: The Purpose Of Business Activity Quiz

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Questions: 7 | Attempts: 1,149 | Updated: Jul 30, 2024

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Business Studies: The Purpose Of Business Activity Quiz - Quiz

This tes is base on the IGCSE book for year 10, and to find the answer you need to look inisde the book on the first unit:
Unit 1: Purpose of the business activity.

Questions and Answers

1.

What is the definition of: NEED
- A.
  
  A Need is a good or a service essential for living.
- B.
  
  A Need is a good or a service which people would like to have, but which is not to essential for living. People's wants are unlimited
- C.
  
  A Nedd is a good or a service essential for living.
- D.
  
  A Need is none of the answer above
Correct Answer
A. A Need is a good or a service essential for living.

Explanation
A need is a good or a service essential for living. This means that it is something that is necessary for survival or basic well-being. It is not just something that people would like to have, but something that they must have in order to meet their basic needs. People's wants may be unlimited, but needs are limited to those things that are necessary for survival and basic functioning.

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2.

What is the definition of: WANT
- A.
  
  A Want is something like food or clothing
- B.
  
  A Want is a good or a service essential for living.
- C.
  
  A Want is a good or a service which people would like to have,
- D.
  
  A Want is none of the answer above
Correct Answer
C. A Want is a good or a service which people would like to have,

Explanation
A Want refers to a good or a service that individuals desire or wish to possess. It is not a necessity for survival but rather something that people would like to have.

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3.

What is a: SCARCITY
- A.
  
  A Scarcity is the next best alternative given up by choosing another item
- B.
  
  A Scarcity is the lack of sufficent products to fukfil the total wants of the population.
- C.
  
  A Scarcity is those resources needed to produce goods or services
- D.
  
  A Scarcity is none of the answer above
Correct Answer
B. A Scarcity is the lack of sufficent products to fukfil the total wants of the population.

Explanation
The correct answer states that scarcity is the lack of sufficient products to fulfill the total wants of the population. This means that there is a limited availability of resources or goods compared to the unlimited wants or needs of people. Scarcity occurs when there is not enough supply to meet the demand, leading to competition and choices about how resources should be allocated.

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4.

What is the definition of a: STAKE HOLDER
- A.
  
  A Stake Holder is someone that work in the business has a worker.
- B.
  
  A Stake Holder is any person or group with a direct interest in the performance and activities
Correct Answer
B. A Stake Holder is any person or group with a direct interest in the performance and activities

Explanation
A stakeholder is someone who has a direct interest in the performance and activities of a business. They can be individuals or groups who are affected by or can affect the decisions and outcomes of the business. Stakeholders can include employees, customers, shareholders, suppliers, government agencies, and the local community. They have a stake in the success and well-being of the business and can influence its operations, strategies, and overall success.

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5.

What is the business term for money?
- A.
  
  Dosh
- B.
  
  Capital
- C.
  
  Interest
- D.
  
  Wonga
Correct Answer
B. Capital

Explanation
Capital is the correct answer because in business, capital refers to the financial resources or assets that a company uses to fund its operations and invest in its growth. It can include cash, equipment, buildings, and other tangible or intangible assets that have value. Capital is essential for businesses to start, operate, and expand, and it represents the financial foundation of a company.

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6.

Property owned by a company, regarded as having value and available to meet debts, commitments, or legacies.
- A.
  
  Liabilities
- B.
  
  Assets
- C.
  
  Capital
- D.
  
  Balance Sheet
Correct Answer
B. Assets

Explanation
Assets are property owned by a company that have value and are available to meet debts, commitments, or legacies. This can include tangible assets such as buildings, equipment, and inventory, as well as intangible assets such as patents, trademarks, and goodwill. Assets are an important component of a company's balance sheet and can be used to generate revenue or provide a source of collateral.

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7.

Which of these is a diagnostic tool?
- A.
  
  Asset Sheet
- B.
  
  Liability Sheet
- C.
  
  Balance Sheet
- D.
  
  Capital Sheet
Correct Answer
C. Balance Sheet

Explanation
A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It shows the company's assets, liabilities, and shareholders' equity, providing valuable information about its financial health and performance. By analyzing the balance sheet, stakeholders can assess the company's liquidity, solvency, and overall financial stability. Therefore, a balance sheet is considered a diagnostic tool as it helps in evaluating the financial condition of a company.

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Current Version
Jul 30, 2024

Quiz Edited by
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Dec 15, 2011

Quiz Created by
Irvindelbrah

Business Studies: The Purpose Of Business Activity Quiz

What is the definition of: NEED

What is the definition of: WANT

What is a: SCARCITY

What is the definition of a: STAKE HOLDER

What is the business term for money?

Property owned by a company, regarded as having value and available to meet debts, commitments, or legacies.

Which of these is a diagnostic tool?