Question 1

What is the primary purpose of insurance?

Accepted Answer

To provide financial protection against future losses

Question 2

Which of the following is an example of an insurable risk?

Accepted Answer

Motor vehicle damage

Question 3

Comprehensive motor vehicle insurance provides coverage for:

Accepted Answer

Complete coverage for the insured and third parties

Question 4

What is the oldest type of insurance policy mentioned?

Accepted Answer

Marine insurance

Question 5

Which principle of insurance states that all relevant information must be disclosed?

Accepted Answer

Utmost good faith

Question 6

An entrepreneur is defined as an individual who:

Accepted Answer

Takes risks to establish a business

Question 7

Which of these is NOT a characteristic of a successful entrepreneur?

Accepted Answer

Quitting at the first obstacle

Question 8

What does 'networking' refer to for entrepreneurs?

Accepted Answer

Meeting people to share passion and gain support

Question 9

A business opportunity involves the chance to engage in production of goods or rendering of services to earn a:

Accepted Answer

Means of livelihood

Question 10

Buying a franchise is an example of which type of business opportunity?

Accepted Answer

It can be any of the above depending on the franchise

Question 11

A business that operates in only one country but has many locations is considered:

Accepted Answer

National business

Question 12

Which of these is NOT a well-known multinational enterprise mentioned in the text?

Accepted Answer

Microsoft

Question 13

A consumer is a person who buys and uses a product or service for:

Accepted Answer

Direct use or ownership

Question 14

Consumerism is a movement by consumers to obtain the greatest benefit from goods and services purchased for:

Accepted Answer

Consumption

Question 15

Which of the universal consumer rights states that consumers should not be sold dangerous goods?

Accepted Answer

Right to safety

Question 16

What is a consumer responsibility related to advertisements?

Accepted Answer

To act as a guide against deceptive advertisements

Question 17

Needs are described as:

Accepted Answer

Fundamental to human existence

Question 18

The arrangement of needs or wants in order of priority is called:

Accepted Answer

Scale of preference

Question 19

Opportunity cost refers to:

Accepted Answer

Forgone alternatives as a result of making a choice

Question 20

Impulse buying is described as:

Accepted Answer

An unplanned decision to buy

Business Studies E-Notes for Year 8, 2nd Term

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