I: Choose the most suitable answer for 10.

Why do many investors buy or

each blank. purchase the land?
a. Because they could open for
1. What is the input in a business?
a commercial and etc.
a. Goods c. by products
b. Because they could produce
b. Service d. land
and stock them
2. What is the output in a business?
c. Because of profit
a. Goods c. labor
d. Because they need the retail
b. Land d. capital
experiment
3. What is the critically important
11. The main uses of land are for, except
businesses in a shop and café?
……
a. Employees c. location
a. Residence c. quality
b. Customers d. organization
b. commercial d. recreation
4. The other than skills, what do the
12. characteristic of labor as a factor of
labor need to have?
production is ……
a. Labels promote c. equipment
a. human effort
b. Attitude d. brands
b. labor has good bargaining
5. What does the Enterprise need to do
power
in a business activity, Except!
c. labor is not heterogeneous
a. Creative c. Innovative
b. Take risk d. Labels
d. easily mobile
6. The ability to come up with new
13. what does land owner receive as a
ideas, new ways of doing things and
reward in production?
to handle uncertainty whilst
a. Wages c. interest
effectively managing change is …….
b. Rent d. profit
a. Land c. capital
14. What does Entrepreneur receive as a
b. Labor d. enterprise
reward in production?
7. It is a specific piece of earth, a
a. Wages c. interest
property with clearly delineated
b. Rent d. profit
boundaries, that has an owner is
15. What does provider receive as a
……
reward in production?
a. Land c. capital
a. Wages c. interest
b. Labor d. enterprise
b. Rent d. profit
8. …… is money, or the assets such as
16. what is the meaning of adding value?
buildings, plant and equipment,
a. A transformation process.
which it has bought and uses in the
b. A name or design that makes a
production process.
product recognizable.
a. Land c. capital
c. Supply and demand which
b. Labor d. enterprise
determine the price in a market.
9. …… is the effort that people
d. Measures the sacrifice made by
contribute to the production of goods
choosing one option in term.
and services.
17. What is the meaning of opportunity
a. Land c. capital
cost?
b. Labor d. enterprise
 a. A transformation process. a. Well rounded c. interest
b. A name or design that makes a b. Backgrounds d. skills
product recognizable. 24. Why do governments like
c. Supply and demand enterpreneurs?
whichdetermine the price in a a. Create jobs and help keep
market. unemployment low
d. Measures the sacrifice made by b. The nature of the transformation
choosing one option in term. process
18. What is the meaning of market c. The demand for products
forces? d. The cost and availability of inputs
a. A transformation process. 25. A business plan will typically have
b. A name or design that makes a the following elements ……
product recognizable. a. They may worry that the private
c. Supply and demand which sector is misleading customers.
determine the price in a market. b. They may want to use some
d. Measures the sacrifice made by businesses to help maintain.
choosing one option in term. c. An estimate of the sales of the
19. What is the meaning of brand? business
a. A transformation process. d. They want to provide a full range
b. A name or design that makes a of services
product recognizable.
c. Supply and demand which
determine the price in a market.
d. Measures the sacrifice made by
choosing one option in term.
20. When they stop providing good
value and stop being competitive, it
means ……
a. Businesses fail
b. Dynamic business
c. Businesses succeed
d. Businesses environment
21. Someone who is willing to take a
risk to start a new project or a new
business is ……
a. labors c. employees
b. Entrepreneur d. enterprise
22. ………. is the skill needed to make a
new idea work.
a. labors c. employees
b. Entrepreneur d. enterprise
23. Entrepreneurs can differ enormously
in terms of their, except……
 PART II: For question numbers 1-10, complete the text using the words
provided.
nationalization quaternary innovative primary sector tertiary sector
sector
Well rounded Able to bounce secondary Result- Totally
back sector oriented committed

1. _____________ this is the part of the economy that manufactures and assembles products
using raw materials.
2. Occurs when a government takes ownership of a business from the private sector into the
public sector is ___________.
3. This sector provides services to the general population and to business is ____________.
4. __________ is a subset of the tertiary sector which represents organizations that are
based on knowledge and the skills of employee: for example, information service
businesses and etc.
5. __________ is usually most important in less developed countries and typically less
important in industrial country.
6. Someone who can make the product, promote it, sell it and count the money is ________.
7. Hard work, energy and single- mindedness are essential elements in the entrepreneurial
profile is _____________.
8. To make a business successful requires a drive that only comes from setting goals and
targets and getting pleasure from achieving them is ___________.
9. ______________ is a person who can cope with mistakes and have the confidence to try
again.
10. A person who is able to carve out a new niche in the market, often a niche that is invisible
to others is _____________.

Part III. Answer the questions below!

1. Draw the value chain of a product in IKEA!
2. Mention the advantages and disadvantages of being a sole trader.
Advantage Disadvantage

3. What is the advantage of buying a franchise?

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4. Mention the advantage and disadvantage of setting up as a partnership.

Advantage Disadvantage
5. Explain the reason, why do businesses fail early on in their life.
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