Oxford AQA IGCSE · Business (9225)

The purpose and nature of businesses: Practice Questions

5 multiple-choice questions marked as you go, and 3 written questions with worked solutions. All on The purpose and nature of businesses.

8 questions12 marksFree, no account

Question 1

1 mark

Which of the following describes a need rather than a want in a business context?

Question 2

1 mark

A business that extracts raw materials, such as a company mining for coal or iron ore, is operating in the:

Question 3

1 mark

Which of the following is considered a capital factor of production within a business?

Question 4

1 mark

A local entrepreneur decides to open a small bakery. They have to choose between spending their budget on a new high-efficiency oven or a local delivery van. If the entrepreneur chooses the delivery van, what is the opportunity cost of this decision?

Question 5

1 mark

An entrepreneur decides to use $\$5,000$ to purchase new inventory rather than spending it on a staff training course. What is the opportunity cost of this decision?

Question 6

2 marks

Identify which factor of production is represented by an entrepreneur's willingness to take a financial risk to set up a new software company.

Write your answer out first, then check it against the worked solution.

Question 7

3 marks

A fashion retailer is experiencing a significant increase in online sales but faces new government regulations regarding packaging waste. Explain how this situation demonstrates the dynamic nature of business.

Write your answer out first, then check it against the worked solution.

Question 8

2 marks

A customer visits a local bakery to buy a loaf of bread because they are hungry. In business terms, is this purchase satisfying a need or a want?

Write your answer out first, then check it against the worked solution.

* The content provided by thinka is generated by AI and may not always be accurate or up-to-date. Please use it as a supplementary resource and verify with official materials.

You've seen the model answer. Now get yours marked.

This page can show you how a good answer looks. It cannot tell you what your answer was missing. thinka marks your written work against the real mark scheme in about 15 seconds.

Get My Answers Marked Back to the notes

Want more questions like these? Get a fresh set on this topic, graded as you go.

Practice More