Grade 7 Business Studies – Business Activities Quiz

1. Which of the following statements about business is INCORRECT?

A system where goods are manufactured and stored there.
All businesses are established for the same purpose.
A system where goods are manufactured and distributed free of cost.
An organization where people work for meeting their own needs.
Explanation:

2. To which type of businesses belong the education, entertainment and information technology?

Manufacturing
Service
None of these
Hybrid
Explanation:

3. A grocery store is an example of which type of business activity?

Merchandising
Hybrid
Manufacturing
Service
Explanation:

4. What do we call a person who is willing to take the risks of starting a business in order to make a profit?

Incorporator
Partner
Proprietor
Entrepreneur
Explanation:

5. Which sector is involved in providing client services?

Quaternary sector
Secondary sector
Tertiary sector
Primary sector
Explanation:

6. Which of the following companies belong to the Primary sector?

schools
mining companies
hospitals
merchandising companies
Explanation:

7. Which of the following refers to the business of buying and selling or bartering commodities?

sector
trade
service
industry
Explanation:

8. Which manufacturing industry is involved in the combining of various ingredients to create a new product?

assembling
processing
synthetical
analytical
Explanation:

9. Land, labour, capital and enterprise are collectively known as....

Goods and services
Output
Factors of production
Business cycle
Explanation:

10. Which of these is the best definition of the ‘economic problem’?

People do not have enough money.
There are too many factors of production.
There are not enough resources to satisfy people’s wants.
The amount of something produced by a person, machine or industry.
Explanation:

11. Which of the following is NOT a factor of production?

skilled labor
a play station
oil reserves
factory buildings
Explanation:

12. Division of labour can be defined as...........

Workers specialise on just one task and become better at it.
Workers become specialist in all jobs.
All firms only have one worker
No workers are employed as machines always do all the work.
Explanation:

13. Which is a disadvantage of 'division of labour'?

Less time is wasted moving from one work beach to another.
Quicker & cheaper to train workers as fewer skills need to be taught.
workers and trained in one task & specialised in this, increasing efficiency.
Workers can become bored from doing just one job - efficiency might fall.
Explanation:

14. What is 'added value'?

is the next best alternative given up by choosing another item.
is the difference between the selling price of a product and the cost of bought-in materials and components.
It's a good or service essential for living.
is the lack of sufficient products to fulfill the total wants of the population.
Explanation:

15. What is specialisation?

When a businesses concentrates on becoming an expert in producing a particular product of service
When your score a special goal playing football
When you behave especially well in an IGCSE Business Studies lesson
The difference between the cost of producing a product and the price that it is sold for
Explanation:

16. What is opportunity cost?

The cost of your favorite video game
Something that is necessary to live
The value of the next best opportunity that is not taken when making a particularly decision
A missed opportunity
Explanation:

17. What is a want?

Something that you do not wish to have
Something that a consumer desires but does not need to live
A present that you buy your friend
Something that a consumer needs to live
Explanation:

18. Which of the following characteristics does a successful entrepreneur have?

Risk averse/resilient
Willing to take calculated risks/Risk averse
Creative / innovative
Risk averse/resilient
Explanation:

19. Which of the following characteristics does a successful entrepreneur don't have?

Risk averse
Willing to take calculated risks
Determined & resilient
Confident & good at communication
Explanation:

20. What might an entrepreneur not risk when starting up a business?

Relationships with family & friends might suffer due to long hours
Giving up a job / steady income
They might have invested their own personal savings
Getting rich if the business does well
Explanation:

21. Why is it not useful to create a business plan when starting a new business?

Undertanding the needs of customers helps the business to make better marketing decisions, thus reduces the risk of failure
It helps to identify the resources needed to operate
It guarantees the business will succeed
It can help obtain finance from a bank / investors
Explanation:

22. Which of the following is a benefit of being a Sole Trader?

The owner has limited liability
Workload can be shared between the owners
The owner has complete control over business decisions
Finance can be raised by selling shares to friends and family
Explanation:

23. Which of the following is not a primary business activity?

Marketing
Fishing
Mining
Farming
Explanation:

Marketing is a secondary business activity that involves promoting and selling products or services.

24. Which of the following is an example of a secondary business activity?

Forestry
Manufacturing
Farming
Retailing
Explanation:

Manufacturing involves converting raw materials into finished goods or products, making it a secondary business activity.

25. Which of the following is not a tertiary business activity?

Banking
Farming
Transportation
Healthcare
Explanation:

Farming is a primary business activity that involves the cultivation of crops or raising livestock.

26. Which of the following is an example of a quaternary business activity?

Research and Development
Mining
Manufacturing
Education
Explanation:

Quaternary business activities involve knowledge-based services such as research and development.

27. Which of the following is a primary business activity related to agriculture?

Banking
Tourism
Farming
Retailing
Explanation:

Farming is a primary business activity that is directly involved in the production of crops or livestock.

28. Which of the following is an example of a quinary business activity?

Education
Healthcare
Research and Development
Mining
Explanation:

Quinary business activities involve high-level decision-making and executive functions, such as healthcare services.

29. Which of the following is not a secondary business activity?

Manufacturing
Retailing
Tourism
Forestry
Explanation:

Tourism is a tertiary business activity that involves providing services to travelers and tourists.

30. Which of the following is not a primary business activity related to mining?

Processing
Retailing
Extraction
Exploration
Explanation:

Retailing is a tertiary business activity that involves selling products to customers, not directly related to mining.

31. Which of the following is a secondary business activity related to forestry?

Tourism
Fishing
Tree planting
Timber processing
Explanation:

Timber processing involves converting raw timber into usable wood products, making it a secondary business activity related to forestry.

32. Which of the following is a tertiary business activity related to transportation?

Manufacturing vehicles
Operating airlines
Farming
Construction
Explanation:

Operating airlines involves providing air transportation services, making it a tertiary business activity related to transportation.

33. Which of the following is a primary business activity related to fishing?

Fish farming
Boat building
Fish marketing
Fish processing
Explanation:

Fish farming involves the breeding and rearing of fish for consumption, making it a primary business activity related to fishing.

34. Which of the following is a quinary business activity in the education sector?

Catering
Research and Publications
Teaching
Administration
Explanation:

Research and Publications involves high-level academic research and scholarly publications, making it a quinary business activity in the education sector.

35. Which of the following is a quaternary business activity related to healthcare?

Medical Research
Pharmacy
Hospital Management
Nursing
Explanation:

Medical Research involves conducting research and studies to improve healthcare services, making it a quaternary business activity related to healthcare.

36. Which of the following is a primary business activity related to construction?

Architectural design
Reading construction plans
Property management
Building materials supply
Explanation:

Building materials supply involves providing essential materials for construction, making it a primary business activity related to construction.

37. Which of the following is a tertiary business activity related to tourism?

Hotel management
Tour guiding
Airline catering
Tourist transport
Explanation:

Accommodation services involve providing lodging for tourists, making it a tertiary business activity related to tourism.

38. Which of the following is a secondary business activity related to retailing?

Product sourcing
Store layout planning
Customer service
Merchandise selection
Explanation:

Store layout planning involves designing the layout and structure of retail stores, making it a secondary business activity related to retailing.

39. Which of the following is a primary business activity related to education?

School administration
Textbook publishing
Curriculum development
Teaching
Explanation:

Teaching involves imparting knowledge and skills to students, making it a primary business activity related to education.

40. Which of the following is not a quinary business activity in the finance sector?

Investment banking
Wealth management
Financial advisory
Retail banking
Explanation:

Retail banking is a tertiary business activity that involves providing basic banking services to individual customers, not a quinary activity in the finance sector.

41. Which of the following is a quaternary business activity related to agriculture?

Livestock farming research
Crop cultivation
Farm mechanization
Farm product processing
Explanation:

Soil nutrients analysis involves testing and analyzing soil composition, making it a quaternary business activity related to agriculture.

42. Which of the following is a primary business activity related to mining?

Refining minerals
Mineral exploration
Transporting minerals
Retailing minerals
Explanation:

Ore extraction involves removing minerals from the ground, making it a primary business activity related to mining.

43. Which of the following is a quaternary business activity related to transportation?

Vehicle manufacturing
Driver training
Route planning
Satellite navigation
Explanation:

Aircraft maintenance involves servicing and repairing aircraft, making it a quaternary business activity related to transportation.

44. Which of the following is a primary business activity related to forestry?

Timber harvesting
Forest conservation
Wood processing
Eco-tourism
Explanation:

Wood harvesting involves cutting down trees for lumber, making it a primary business activity related to forestry.

45. Which of the following is not a quinary business activity in the education sector?

Education policy-making
Curriculum development
Student counseling
Teaching
Explanation:

Teaching is a primary business activity in the education sector, not a quinary activity that involves top-level governance.

46. Which of the following is a quinary business activity related to healthcare?

Hospital management
Nursing
Pharmaceutical research
Health insurance
Explanation:

Health policy-making involves developing healthcare regulations and guidelines, making it a quinary business activity related to healthcare.

47. Which of the following is a secondary business activity related to construction?

Project management
Building materials supply
Architectural design
Concrete pouring
Explanation:

Bricklaying involves laying bricks for construction projects, making it a secondary business activity related to construction.

48. Which of the following is a tertiary business activity related to tourism?

Tourist transport
Hotel management
Tour guiding
Tourist attraction development
Explanation:

Accommodation services involve providing lodging for tourists, making it a tertiary business activity related to tourism.

49. Which of the following is a primary business activity related to retailing?

Customer service
Merchandise selection
Store management
Product display
Explanation:

Merchandise selection involves choosing products to sell in retail stores, making it a primary business activity related to retailing.

50. Which of the following is not a quaternary business activity in the finance sector?

Investment management
Risk assessment
Retail banking
Financial analysis
Explanation:

Retail banking is a tertiary business activity, not a quaternary activity that involves high-level financial services.

51. Which of the following is a quaternary business activity related to agriculture?

Irrigation system design
Soil nutrients analysis
Seed breeding
Farm produce packaging
Explanation:

Soil nutrients analysis involves testing and analyzing soil composition, making it a quaternary business activity related to agriculture.

52. Which of the following is a primary business activity related to mining?

Mineral processing
Metal smelting
Staff training
Ore extraction
Explanation:

Ore extraction involves removing minerals from the ground, making it a primary business activity related to mining.

53. Which of the following is a quaternary business activity related to transportation?

Route planning
Aircraft maintenance
Cargo handling
Traffic control
Explanation:

Aircraft maintenance involves servicing and repairing aircraft, making it a quaternary business activity related to transportation.

54. Which of the following is a primary business activity related to forestry?

Wood harvesting
Forest conservation
Timber processing
Eco-tourism
Explanation:

Wood harvesting involves cutting down trees for lumber, making it a primary business activity related to forestry.

55. Which of the following is not a quinary business activity in the education sector?

Curriculum development
Teaching
School board membership
Principalship
Explanation:

Teaching is a primary business activity in the education sector, not a quinary activity that involves top-level governance.

56. Which of the following is a quinary business activity related to healthcare?

Medical research
Nursing
Health policy-making
Hospital administration
Explanation:

Health policy-making involves developing healthcare regulations and guidelines, making it a quinary business activity related to healthcare.

57. Which of the following is a secondary business activity related to construction?

Project management
Material sourcing
Bricklaying
Architectural design
Explanation:

Bricklaying involves laying bricks for construction projects, making it a secondary business activity related to construction.

58. Which of the following is a tertiary business activity related to tourism?

Wildlife preservation
Safari guiding
Accommodation services
Tourism marketing
Explanation:

Accommodation services involve providing lodging for tourists, making it a tertiary business activity related to tourism.