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18 views

Bus 10 Solved

Uploaded by

Linda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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LONDON INTERNATIONAL SCHOOLS – ONLINE SECTION

Year 10 Business studies mid-term exam


Name:……………………………………………………………………………………………………………………………………
Out of 32 questions, answer only 30 questions by choosing the correct letter:
1. Which of the following is the main purpose of business activity?

a) To provide employment for people


b) To satisfy the wants and needs of customers
c) To contribute to government revenue
d) To protect the environment

2. Which of the following is an example of opportunity cost?


a) The money spent on purchasing raw materials
b) The benefit of the next best alternative forgone
c) The profit a business makes on a sale
d) The cost of production for a new product

3. What is the difference between a need and a want?


a) A need is a luxury, while a want is a necessity
b) A need is essential for survival, while a want is a desire for something that is not essential
c) A need is something a business must purchase, while a want is optional
d) A need refers to something that customers demand, while a want refers to what businesses
supply

4. What is meant by the factors of production?


a) The stages of manufacturing a product
b) The resources needed to produce goods and services
c) The various costs involved in running a business
d) The number of employees required to produce goods

5. Which of the following is capital as a factor of production?


a) The money a business makes in profit
b) The machinery and equipment used to produce goods
c) The land on which the business operates
d) The people employed by the business
6. Specialization in business refers to:
a) Focusing on producing only one type of product
b) A business selling its products in a specific market
c) Individuals or businesses focusing on a limited range of tasks
d) A company choosing not to diversify its operations

7. Added value can be defined as:


a) The difference between the selling price and the cost of raw materials
b) The total revenue a business earns from sales
c) The increase in value after tax is deducted from revenue
d) The amount of profit a business makes after paying all expenses

8. Which of the following is a primary sector activity?


a) Manufacturing cars
b) Banking services
c) Mining coal
d) Retail sales

9. Which of these is an example of a public sector organization?


a) A local restaurant
b) A multinational company
c) A government-owned hospital
d) A family-owned grocery store

10. Which of the following best describes opportunity cost?

a) The money cost of a decision


b) The benefit lost from the next best alternative
c) The total revenue of a business
d) The value of the most expensive option

11. What is a need in economic terms?


a) A luxury item
b) A product you desire
c) A basic requirement for survival
d) Any item sold in the market
12. Which of the following is an example of a secondary sector activity?
a) Growing wheat
b) Banking services
c) Making furniture
d) Advertising

13. Which of the following is a characteristic of an entrepreneur?


a) Prefers to avoid risks
b) Follows instructions from others
c) Takes responsibility for business decisions
d) Works only in public sector jobs

14. What is division of labor?


a) Employees working longer hours
b) Workers specializing in particular tasks
c) Reducing the workforce to cut costs
d) Increasing the number of tasks for each worker

15. What is capital in terms of the factors of production?


a) The amount of profit made by a business
b) The machinery, tools, and buildings used in production
c) The natural resources used in production
d) The number of employees in a business

16. The tertiary sector of industry includes businesses that:

a) Extract raw materials from the Earth


b) Transform raw materials into finished products
c) Provide services to consumers and other businesses
d) Engage in high-tech research and development

17. Which of the following is an example of a business in the secondary sector?


a) A bank providing loans
b) A farmer growing vegetables
c) A factory assembling cars
d) A hotel providing accommodation
18. Public sector organizations are typically:
a) Owned and operated by individuals for profit
b) Non-profit organizations providing services to the public
c) Owned and controlled by the government
d) Multinational corporations

19. Which of the following is an example of a private sector business?


a) A government-run hospital
b) A small bakery owned by an individual
c) A state-owned railway company
d) A local fire department

20. Privatization is best defined as:


a) A private company being taken over by the government
b) A government-run business being sold to private individuals
c) The creation of a partnership between private and public sectors
d) A public company being listed on the stock exchange

21. What is the role of businesses in the primary sector?


a) To provide services to the general public
b) To transform raw materials into finished products
c) To extract and harvest natural resources
d) To conduct scientific research

22. Which of the following is a characteristic of a successful entrepreneur?

a) Risk aversion
b) Reluctance to innovate
c) Strong leadership skills
d) Preference for routine work

23. Which of the following is an example of internal (organic) growth?


a) A company buying another company
b) A business merging with a competitor
c) A business opening new branches or expanding its product range
d) A company entering a joint venture with another firm
24. Horizontal integration involves:
a) A business merging with or taking over a company in a different industry
b) A business merging with or taking over a competitor in the same industry
c) A business merging with a supplier or distributor
d) A business investing in new machinery

25. What is one possible advantage of business growth?


a) Decreased competition
b) Lower management complexity
c) Increased market share and brand recognition
d) Less need for specialized staff

26. Which of the following is a reason why a business might remain small?
a) To take advantage of economies of scale
b) To avoid dealing with competition
c) The owner objective to stay small
d) To reduce the workload for its employees

27. A business that grows by merging with a supplier is an example of:


a) Horizontal integration
b) Conglomerate integration
c) Vertical integration
d) Organic growth

28. Which of the following measures can be used to assess the size of a business?

a) The number of employees, sales, and capital


b) The number of products it sells to the public
c) The size of the factory or office it operates from
d) The age of the business

29. Which of the following is a characteristic of a sole trader?


a) Limited liability
b) Shared profits among partners
c) Ownership by shareholders
d) Full control by one person
30. In a partnership, how are profits typically distributed?
a) Equally among all employees
b) According to the amount of capital invested by each partner
c) Equally among all partners
d) All profits go to the managing partner

31. Which of the following types of businesses is most likely to have unlimited liability?
a) Private limited company
b) Public limited company
c) Sole trader
d) Franchise

32. What is one disadvantage of a partnership?


a) High start-up costs
b) Unlimited liability for all partners
c) The inability to raise large amounts of capital
d) Difficulty in managing a large workforce

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