What is meant by "diseconomies of scale"?
- Unit costs increase as production increases
- Unit costs decrease as production increases
- Unit costs stay the same as production decreases
- Unit costs stay the same as production increaes
What is the term for a legal requirement to a percentage of profits to the government?
What does the term "economies of scale" refer to in business?
- The point where a business makes a profit
- The minimum level of production required to cover costs
- The cost advantages that come with increased production
- The ability to set higher prices for products
What is a mission statement for a business?
- A document outlining the legal structure of the company
- A statement describing the company's long-term goals and purpose
- A financial statement detailing the company's profits and losses
- A marketing plan for a new product
Which is not a function of a business plan?
- Identifying business needs
- Advertising new products
- Estimating future sales
- Calculating future spending
Which of the four factors of production could be described as "human effort, skills, or expertise"?
- Land
- Labour
- Capital
- Enterprise
What is meant by a "business aim"?
- A specific target
- A positive net profit
- An overall direction of the business
- Improved revenue
What is a business's primary objective?
- Maximising profits
- Providing employment
- Minimising costs
- Maximising market share
Which is a valid difference between public and private limited companies?
- Shareholders may receive dividends
- Shares can be bought and sold
- Owners have limited liability
- Share ownership is restricted
A business purchasing a supplier is…
- Conglomerate integration
- Forward vertical integration
- Backward vertical integration
- Horizontal integration
