KNOWLEDGE CHOICE QUESTIONS $(10$ Marks$)$

$1.$ Businesses can be for$-$profit entities or non$-$profit organizations that operate to fulfil an uncharitable mission or further a social cause.

True

False

$2.$ Businesses use $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$as a form of profit to expand their business.

A$.$ Capital

B$.$ Resources

C$.$ Income

D$.$ Assets

$3.$ Scarce resources force us to make a choice between our various needs. This choice is termed Opportunity Cost in economics.

True

False

$4.$ An example of labour in a business would be:

A$.$ Machinery

B$.$ Executives

C$.$ Salaries

D$.$ Land

$5.$ Non$-$renewable resources are also regarded as exhaustible assets in a business.

True

False

$6.$ An entrepreneur can be defined as a person who takes the $\_\_\_\_\_\_\_\_\_\_$ of starting and operating a business.

A$.$ Risk

B$.$ Partnership

C$.$ Influence

D$.$ Responsibility and Accountability

$7.$ Labour is the exercise of human mental and physical efforts in the production of profit in an organisation.

True

False

$8.$ The kind of economic system in which a business operates in$,$ influences the $\_\_\_\_\_\_\_\_\_\_$ that a business will have with its stakeholders.

A$.$ Standards of performance.

B$.$ Accounts

C$.$ Social Contract

D$.$ Salaries

$9.$ The digital economy is enabling and supporting different collaboration structures and the business environment.

True

False

$10.$ In business management there is the free market economy, Socialism, the command economy, and an unmixed economy.

True

False

$11.$ The role of business in society is to innovate and deliver products and services while using natural and human resource so that $\_\_\_\_\_\_\_\_\_\_\_\_$ and profit is created while conducting its operations in a way that will be accepted by society.

A$.$ Assets

B$.$ Economic status

C$.$ Capital

D$.$ Value

$12.$ The second level of the management system involves the organisation's internal environment.

True

False

$13.\_\_\_\_\_\_\_\_\_\_\_\_\_$ are people who invested in the company and have property rights and claims on the organisation

A$.$ Board of directors

B$.$ Owners

C$.$ Employees

D$.$ Suppliers

$14.$ Organisational culture is the foundation of the organization$$s internal environment, it plays a major role in shaping managerial behaviour.

True

False

$15.\_\_\_\_\_\_\_\_\_\_\_\_\_$ and chamber of commerce are the common examples of an interest groups for organisations

A$.$ Regulators

B$.$ Trade unions

C$.$ Competitors

D$.$ Intermediaries

$16.$ The important politico$-$legal factors for business are inflation, interest rates, and unemployment. These factors of the economy always affect the demand for products.

True

False

$17.$ Select the best description for the micro environment:

A$.$ Can be influenced and changed

B$.$ Immediately outside the business

C$.$ Direct interaction

D$.$ No control over

$18.$ Step $3$ involves incorporating the SWOT analysis into the decision$-$making process to determine which business alternative best meets the organization$$s overall strategic plan.

True

False

$19.$ A good $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ relationship is essential to the economy and most importantly for the business.

A$.$ business$-$government

B$.$ supplier$-$intermediary

C$.$ consumer$-$organisation

D$.$ manager$-$subordinate

$20.$ The organisation is an open system and thus interacts with the market environment and macro$-$environment in order to survive.

True

False