Revision Questions - ITB Chapter 1 to Chapter 4

Part A: Multiple Choice Questions

Answer all questions carefully. Recommended time to complete: 30 minutes

1.​ Which of the following organizations is part of the Third Sector?​

A) Charities

B) Partnerships

C) Private companies

D) Government agencies

2.​ What is the term used for land, labor, capital, and enterprise collectively?​

A) Business cycle

B) Factors of production

C) Goods and services

D) Economic output

3.​ A sole trader is a business structure that:​

A) Shares risks and profits among multiple owners

B) Requires approval from the government to operate

C) Has one owner who keeps all the profits and takes all risks

D) Is a legal entity separate from its owner

4.​ Which of the following is NOT considered a factor of production?​

A) A video game console

B) Skilled labor

C) Machinery
 D) Natural resources

5.​ In which economic sector does agriculture belong?​

A) Secondary

B) Tertiary

C) Primary

D) Quaternary

6.​ What is the main disadvantage of the division of labor?​

A) Increases efficiency

B) Reduces the need for training

C) Workers may become bored, reducing productivity

D) Saves time by focusing on specific tasks

7.​ Which sector of the economy is involved in processing raw materials into finished
goods?​

A) Tertiary

B) Primary

C) Secondary

D) Service

8.​ Which sector includes businesses such as hospitals, banks, and retail stores?​

A) Secondary

B) Tertiary

C) Primary

D) Manufacturing
9.​ Which of the following is a primary sector activity?​

A) Teaching

B) Banking

C) Mining

D) Retail

10.​Which of these organizations is usually NOT part of the public sector?

A) Public transport services

B) Healthcare institutions

C) Supermarkets

D) Local government offices

11.​What is the primary role of an entrepreneur in a business?

A) Managing employees

B) Providing financial support

C) Taking risks and organizing production

D) Manufacturing products

12.​Which of the following businesses belongs to the secondary sector?

A) A farm

B) A bank

C) A car factory

D) A school

13.​Which economic sector is also known as the service industry?

A) Primary

B) Secondary

C) Tertiary
 D) Manufacturing

14.​The economic problem exists because:

A) People do not earn enough money

B) There are limited resources to satisfy unlimited wants

C) Factories are producing too many goods

D) Government policies create artificial shortages

15.​Which of the following would be considered a private sector organization?

A) A government-run school

B) A police station

C) A multinational corporation like Apple

D) A public hospital

16.​What is a key advantage of a private limited company?

A) Unlimited liability

B) Easier access to finance

C) Quick decision-making

D) No legal paperwork

17.​Mineral resources like coal and oil fall under which factor of production?

A) Capital

B) Land

C) Enterprise

D) Labor
18.​Which of these business types has the easiest setup process?

A) Public Limited Company

B) Sole Proprietorship

C) Cooperative

D) Corporation

19.​What is a major benefit of a partnership compared to a sole proprietorship?

A) Partners have no financial responsibility

B) Responsibilities and risks are shared

C) Easier to transfer ownership

D) No need for legal registration

20.​What is the maximum number of partners allowed in a standard business

partnership?

A) 5

B) 10

C) 20

D) 200

21.​Forestry falls under which economic sector?

A) Primary

B) Secondary

C) Tertiary

D) Service

22.​Which of the following businesses is part of the tertiary sector?

A) A bakery factory

B) A transportation company

C) A wheat farm
 D) A mining operation

23.​What type of businesses belong to the secondary sector?

A) Banks and insurance companies

B) Car manufacturing and construction

C) Teaching and healthcare services

D) Farming and fishing

24.​What happens in a mixed economy?

A) Only private businesses exist

B) Only the government controls businesses

C) Both private and public sectors contribute to the economy

D) Economic activity is entirely controlled by foreign companies

25.​Which of the following would NOT typically be found in the tertiary sector?

A) A hospital

B) A quarry

C) A law firm

D) A hotel

26.​Which business structure allows for decision-making without consulting partners?

A) Sole trader

B) Partnership

C) Corporation

D) Public Limited Company

27.​What is a key characteristic of a sole proprietorship?

A) Limited liability

B) Shared profits

C) Full control by a single owner

D) Large-scale production

28.​Which of the following companies is an example of a multinational corporation?

A) A family-owned restaurant

B) A neighborhood grocery store

C) Nike or Apple

D) A government-owned hospital

29.​What is a key challenge faced by entrepreneurs in business?

A) Unlimited resources

B) Lack of competition

C) Risk of financial loss

D) No need for marketing

30.​Which of these business types has unlimited liability?​

A) Public Limited Company

B) Sole Trader

C) Cooperative

D) Charity

Part B: Short Answer Questions

1.​ Identify the three major economic sectors.​

___________________________________________________________ [3 marks]
2.​ Provide an example of a business operating in the tertiary sector.​

___________________________________________________________ [1 mark]

3.​ What kind of goods are produced in the secondary sector?​

___________________________________________________________ [1 mark]

4.​ Mention two examples of natural resources utilized in the primary sector.​

_________________________________________________________ [2 marks]

5.​ Explain the difference between needs and wants.​

___________________________________________________________ [2 marks]

6.​ Give one example each of a need and a want for a student.​

1.​ Need: __________________________________________

2.​ Want: __________________________________________ [1 mark]

7.​ Define scarcity in economic terms.​

___________________________________________________________ [1 mark]

8.​ What does the term ‘opportunity cost’ mean?​

___________________________________________________________ [1 mark]

9.​ List the four factors of production.​

1.​ ___________________________________ [1 mark]

2.​ ___________________________________ [1 mark]
3.​ ___________________________________ [1 mark]
4.​ ___________________________________ [1 mark]
10.​Provide one example for each factor of production.​
___________________________________ [1 mark]​

___________________________________ [1 mark]​

___________________________________ [1 mark]​

___________________________________ [1 mark]

11.​How does a sole proprietorship differ from a partnership?​

___________________________________________________________ [2 marks]

12.​State two advantages of forming a limited company.​

___________________________________ [1 mark]​

___________________________________ [1 mark]

13.​List three disadvantages of operating as a sole trader.​

___________________________________ [1 mark]​

___________________________________ [1 mark]​

___________________________________ [1 mark]

14.​What distinguishes needs from wants? (Reworded for variety but same as Q5)​

___________________________________________________________ [2 marks]

15.​Describe the main function of businesses in the secondary sector.

___________________________________________________________ [1 mark]