The 5 quiz questions
Question 1 : What is own capital?
Possible answers:
- Money you have saved to start your own business
- Money borrowed from a friend
- Money borrowed from a family member
- Money borrowed from the bank
Explanation: Own capital is the money you have saved yourself to start or grow your business, unlike borrowed capital (from a bank, family or friends), which has to be repaid.
Question 2 : What is a need?
Possible answers:
- Everything we buy
- Something we use to decorate our houses
- Something we can live without
- Something you cannot live without
Explanation: A need is something you cannot live without, like food, water or shelter. Wants are things that are nice to have but not essential.
Question 3 : What is an entrepreneur?
Possible answers:
- A manager
- A person who started their own business
- A salesperson
- A customer
Explanation: An entrepreneur spots an opportunity and starts their own business, taking on the risks in the hope of making a profit.
Question 4 : What type of business are the supermarkets Checkers and Pick n Pay an example of?
Possible answers:
- A manufacturing business
- A service provider
- A trading business
- The informal sector
Explanation: Supermarkets like Checkers and Pick n Pay (two big South African chains) are trading businesses: they buy finished goods and resell them at a profit, without manufacturing anything themselves.
Question 5 : What is a sole trader?
Possible answers:
- A gardener
- A person who sells brochures
- A farmer
- A person who owns and operates a business by themselves
Explanation: A sole trader owns and runs a business alone: they take all the decisions, keep the profits and are personally responsible for the debts.
