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SingaporeBusiness StudiesQuick questions
Understanding Business Activity
Quick questions on Purpose and nature of business activity explained: O-Level Business Studies
5short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is the factors of production?Show answer
To produce anything, a business combines four factors of production:
What is adding value?Show answer
The central purpose of business activity is to add value. Adding value means the selling price of a product is higher than the cost of the bought-in materials and inputs used to make it.
What is q1?Show answer
State the difference between a need and a want, giving one example of each. [2 marks]
What is q2?Show answer
A bakery buys ingredients for 11. Calculate the value added per cake and state one way it could be increased. [3 marks]
What is q3?Show answer
Explain why a business faces opportunity cost when it decides how to spend its limited budget. [4 marks]
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