paper 1

Question 1

What is the primary objective of a business?

Answer 1

To generate profit by providing goods or services.

Question 2

True or False: A sole trader is a business owned by one person.

Answer 2

True

Question 3

Fill in the blank: A __________ is a business owned by two or more people.

Answer 3

partnership

Question 4

What is a limited company?

Answer 4

A business structure where the owners’ liability is limited to their investment.

Question 5

What are the four factors of production?

Answer 5

Land, labor, capital, and entrepreneurship.

Question 6

What is market research?

Answer 6

The process of gathering, analyzing, and interpreting information about a market.

Question 7

Multiple Choice: Which of the following is a primary research method? A) Surveys B) Internet research C) Industry reports

Answer 7

A) Surveys

Question 8

What is a business plan?

Answer 8

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

Question 9

True or False: Cash flow is the movement of money into and out of a business.

Answer 9

True

Question 10

What is the difference between fixed costs and variable costs?

Answer 10

Fixed costs do not change with production levels, while variable costs do.

Question 11

Fill in the blank: __________ is the process of creating goods and services.

Answer 11

Production

Question 12

What is a SWOT analysis?

Answer 12

A tool for assessing strengths, weaknesses, opportunities, and threats.

Question 13

Multiple Choice: Which of the following is NOT a type of market segmentation? A) Demographic B) Geographic C) Random

Answer 13

C) Random

Question 14

What is the purpose of advertising?

Answer 14

To promote products or services to increase sales.

Question 15

True or False: A brand is a name, term, or design that identifies a seller’s goods.

Answer 15

True

Question 16

What does ‘USP’ stand for in marketing?

Answer 16

Unique Selling Proposition

Question 17

Fill in the blank: __________ pricing is setting a high price to create a perception of quality.

Answer 17

Premium

Question 18

What is the role of a manager?

Answer 18

To plan, organize, lead, and control resources to achieve organizational goals.

Question 19

Multiple Choice: What is the main goal of human resource management? A) Increase production B) Manage employee relations C) Reduce costs

Answer 19

B) Manage employee relations

Question 20

What is motivation in the workplace?

Answer 20

The process that initiates, guides, and maintains goal-oriented behaviors.

Question 21

True or False: The ‘4 Ps’ of marketing are Product, Price, Place, and Promotion.

Answer 21

True

Question 22

What is customer service?

Answer 22

Support offered to customers before, during, and after purchasing products.

Question 23

Fill in the blank: __________ is the process of creating customer loyalty through positive experiences.

Answer 23

Customer relationship management

Question 24

What is the purpose of financial statements?

Answer 24

To provide an overview of a company’s financial performance and position.

Question 25

Multiple Choice: Which financial statement shows a company's profits and losses? A) Balance sheet B) Income statement C) Cash flow statement

Answer 25

B) Income statement

Question 26

What is a market economy?

Answer 26

An economy where supply and demand determine prices and production.

Question 27

True or False: An entrepreneur is someone who starts and runs their own business.

Answer 27

True

Question 28

What is competition in business?

Answer 28

The rivalry between companies to attract customers.

Question 29

Fill in the blank: __________ is a strategy to increase market share by acquiring a competitor.

Answer 29

Merger or acquisition

Question 30

What is corporate social responsibility (CSR)?

Answer 30

A business model that helps a company be socially accountable.

Question 31

Multiple Choice: Which of the following is a disadvantage of being a sole trader? A) Full control B) Unlimited liability C) Easy to set up

Answer 31

B) Unlimited liability

Question 32

What is a target market?

Answer 32

A specific group of consumers a business aims to reach with its products.

Question 33

True or False: E-commerce refers to buying and selling goods over the internet.

Answer 33

True

Question 34

What is supply chain management?

Answer 34

The management of the flow of goods and services from origin to consumer.

Question 35

Fill in the blank: __________ are the costs associated with producing goods or services.

Answer 35

Production costs

Question 36

What is a business's mission statement?

Answer 36

A declaration of the organization's core purpose and focus.

Question 37

Multiple Choice: Which concept refers to the ability of a business to maintain its operations? A) Sustainability B) Profitability C) Scalability

Answer 37

A) Sustainability

Question 38

What is the role of a board of directors?

Answer 38

To oversee the management and make decisions on behalf of shareholders.

Question 39

True or False: A franchise is a type of business model where one party licenses the use of its brand to another.

Answer 39

True

Question 40

What is the break-even point?

Answer 40

The level of sales at which total revenues equal total costs.

Question 41

Fill in the blank: __________ analysis helps businesses understand their internal and external environments.

Answer 41

PESTLE or SWOT

Question 42

What is an investor?

Answer 42

An individual or entity that allocates capital with the expectation of a future financial return.

Question 43

Multiple Choice: Which of the following is NOT a method of raising capital? A) Loans B) Selling shares C) Increasing taxes

Answer 43

C) Increasing taxes

Question 44

What is product differentiation?

Answer 44

The process of distinguishing a product from others to make it more attractive.