Are You Ready For A Business Studies Quiz?

1.

What is the basic economic problem?
- A.
  
  Resources are available in infinite supply
- B.
  
  There aren’t enough needs and wants
- C.
  
  Unlimited wants and limited resources create scarcity
- D.
  
  Unlimited needs and limited resources creates scarcity
Correct Answer
C. Unlimited wants and limited resources create scarcity

Explanation
The basic economic problem is the issue of scarcity, which arises from the fact that human wants and needs are unlimited, while the resources available to fulfill those wants and needs are limited. This creates a situation where individuals and societies must make choices about how to allocate their scarce resources in order to satisfy their most important needs and wants.

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2.

What are the factors of production?
- A.
  
  Land, labour, capital and enterprise
- B.
  
  Land, labour and enterprise
- C.
  
  Employment, ethics, age and gender
- D.
  
  There are no factors of production
Correct Answer
A. Land, labour, capital and enterprise

Explanation
The correct answer is "Land, labour, capital and enterprise". These are the four main factors of production in economics. Land refers to natural resources, labour refers to human effort and skills, capital refers to man-made resources used in production, and enterprise refers to the organization and management of resources to produce goods and services. These factors are essential in the production process and contribute to economic growth and development.

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3.

Which is the best example of opportunity cost?
- A.
  
  There is a car and a bike you want to buy. You decide not to buy either
- B.
  
  Taxes, water and electricity bills
- C.
  
  There is a car and a bike you want to buy. You decide to buy them both
- D.
  
  There is a car and a bike you want to buy. You decide to buy the car instead of the bike
Correct Answer
D. There is a car and a bike you want to buy. You decide to buy the car instead of the bike

Explanation
The best example of opportunity cost is when you decide to buy the car instead of the bike. This is because by choosing to buy the car, you are giving up the opportunity to buy the bike. Opportunity cost refers to the value of the next best alternative that is forgone when a decision is made. In this case, the opportunity cost of buying the car is the bike that you could have purchased instead.

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4.

Which is NOT a business objective?
- A.
  
  Increase sales
- B.
  
  Scam customers
- C.
  
  Survive
- D.
  
  Make profits
Correct Answer
B. Scam customers
5.

Value added is...
- A.
  
  Selling price + cost of goods sold
- B.
  
  Cost of goods sold - selling price
- C.
  
  Selling price - cost of goods sold
- D.
  
  Cost of goods sold + selling price
Correct Answer
C. Selling price - cost of goods sold

Explanation
The value added is calculated by subtracting the cost of goods sold from the selling price. This calculation determines the amount of value that is added to the product through the sales process. By subtracting the cost of goods sold from the selling price, we can determine the profit or value generated from each sale.

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6.

What is Social Enterprise?
- A.
  
  A business that gives all the profit to their owners
- B.
  
  An activity that achieves an reward for society
- C.
  
  Both are true
- D.
  
  None of the above is true
Correct Answer
B. An activity that achieves an reward for society

Explanation
A social enterprise is an activity that aims to achieve a reward for society. Unlike traditional businesses that focus solely on profit generation for their owners, social enterprises prioritize making a positive impact on society. They use business strategies to address social or environmental issues and reinvest their profits into their mission. This model allows them to create sustainable solutions and contribute to the betterment of society.

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7.

Define a franchise:
- A.
  
  Copying and modifying a company's name and logo
- B.
  
  Being hire by a firm and being promoted to manager of on of the shops
- C.
  
  The legal right to use the name and logo of an existing firm and sell he same products
- D.
  
  All of the above
Correct Answer
C. The legal right to use the name and logo of an existing firm and sell he same products

Explanation
The correct answer is "The legal right to use the name and logo of an existing firm and sell the same products." This definition accurately describes a franchise, which is a type of business arrangement where an individual or entity is granted the permission to operate a business using the established brand, name, and logo of an existing company. The franchisee pays fees or royalties to the franchisor in exchange for the right to use their intellectual property and benefit from their established business model and support. This allows the franchisee to sell the same products or services as the franchisor, benefiting from their brand recognition and established customer base.

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Are You Ready For A Business Studies Quiz?

What is the basic economic problem?

What are the factors of production?

Which is the best example of opportunity cost?

Which is NOT a business objective?

Value added is...

What is Social Enterprise?

Define a franchise: