BUSINESS ACTIVITY AND INFLUENCES ON BUSINESS (UNIT 1)

Question 1

What is the primary purpose of a business?

Answer 1

To provide goods or services to meet the needs of customers.

Question 2

True or False: A sole trader is a type of business owned by one individual.

Answer 2

True

Question 3

Fill in the blank: Businesses operate in a __________ environment that includes economic, social, and legal factors.

Answer 3

business

Question 4

What is meant by ‘business activity’?

Answer 4

The processes involved in producing goods and services to satisfy customer needs.

Question 5

Which of the following is NOT a type of business ownership? A) Partnership B) Corporation C) Franchise D) Monopoly

Answer 5

D) Monopoly

Question 6

What is a stakeholder?

Answer 6

Any individual or group that has an interest in the success of a business.

Question 7

True or False: Customers are considered stakeholders in a business.

Answer 7

True

Question 8

What is the role of competition in business?

Answer 8

To drive innovation, improve quality, and lower prices.

Question 9

Fill in the blank: The __________ is the amount of money a business earns after all expenses are paid.

Answer 9

profit

Question 10

What does the term ‘market research’ refer to?

Answer 10

The process of gathering information about consumers’ needs and preferences.

Question 11

Which factor is NOT typically considered an external influence on business? A) Economic conditions B) Technology C) Employee morale

Answer 11

C) Employee morale

Question 12

What is a business plan?

Answer 12

A document outlining a business’s goals, strategies, and financial projections.

Question 13

True or False: The legal structure of a business can affect its tax obligations.

Answer 13

True

Question 14

What does SWOT stand for in business analysis?

Answer 14

Strengths, Weaknesses, Opportunities, Threats.

Question 15

Fill in the blank: __________ is the practice of promoting products to increase sales.

Answer 15

Marketing

Question 16

What is the significance of supply and demand in business?

Answer 16

They determine the price and availability of goods and services.

Question 17

Which of the following is an example of an internal influence on a business? A) Government regulations B) Company culture C) Economic trends

Answer 17

B) Company culture

Question 18

True or False: A business’s ethical practices can influence its reputation.

Answer 18

True

Question 19

What is meant by ‘business sustainability’?

Answer 19

Practices that meet current needs without compromising future generations’ ability to meet theirs.

Question 20

Fill in the blank: A __________ is a document that outlines the rights and responsibilities of a business and its stakeholders.

Answer 20

contract

Question 21

What is the significance of customer feedback in business?

Answer 21

It helps businesses improve products and services based on consumer preferences.

Question 22

True or False: The location of a business can affect its success.

Answer 22

True

Question 23

What is ‘corporate social responsibility’ (CSR)?

Answer 23

A business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Question 24

Fill in the blank: __________ analysis is used to assess the external environment of a business.

Answer 24

PESTLE

Question 25

What is the purpose of a business's mission statement?

Answer 25

To define the company's purpose and primary objectives.

Question 26

Which of the following factors can affect consumer buying behavior? A) Cultural B) Social C) Personal D) All of the above

Answer 26

D) All of the above