Match the concepts in column A with the descriptions in column B:

A

Statement: B

Nr:

Your Answers:

a) Economics

1.1 Business cycle, inflation, and recession

1.1

b) Micro economics

1.2 Economy as a whole, supply and demand for money, capital and commodities

1.2

c) Economic factors

1.3 Individual agents such as households and businesses

1.3

d) Macro economics

1.4 Production, distribution, trade and consumption of goods and services

1.4

e) Free Market economy

1.5 All transfers of money, goods and services are devoid of coercion and theft

1.5

Total question 1

/5

Question 2: Select from column A the correct answer to match column B.

Match the factors that influence the form of business ownership in column A with the descriptions in column B:

A

Statement: B

Nr:

Your Answers:

a) Liability and accountability

2.1 Lifespan of the business.

2.1

b) Continuity

2.2 Separate (from owner) legal entity.

2.2

c) Legal personality

2.3 Statutory requirements that must be complied with.

2.3

d) Legal requirements

2.4 Requirements on how financial record must be kept

2.4

e) Accounting requirements

2.5 Responsibility for possible debts and other legal obligations of a business.

2.5

Total question 2

/5

Student Number:

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Question 3: Read each statement carefully then state true or false in the space provided.

Nr:

Statement :

Your

3.1

An entrepreneur is a high risk-taker who will enthusiastically embrace a new or original concept that has not been tried before.

3.2

Large corporate companies, in most of the successful world economies are the biggest contributors to job creation.

3.3

Entrepreneurs have the freedom to choose and make their own decisions—they answer to no-one.

3.4

All SMMEs are owned or managed by entrepreneurs.

3.5

Entrepreneurs are also small business managers as they manage their own enterprises to ensure permanence and growth.

3.6

Innovation deals with finding an idea for a new product.

3.7

A viability study is an in-depth investigation of the profitability of a business idea to be converted into a business enterprise.

3.8

A feasibility study largely focuses on the entrepreneur’s ability to convert an idea into a small business enterprise.

3.9

General Motors practises niche marketing when it sells specific models for different income and age groups

3.10

Nike practices segment marketing by selling athletic gear for basketball, running, and soccer.

Total question 3

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