Principles of Business 5

The money used for the day to day operations of a business is called

• Fixed Capital

• Nominal capital

• floating capital

• working capital

The factor of production which earns interest is

• land

• labour

• capital

• enterprise

Which of the following is the Best example of capital as a factor of production?

• Money

• Shares

• Machinery

• Debentures

Which of the following can be described as a marketing activity?

• Issuing bulletins on staff matters

• Distributing commodities to outlets

• Publicising advertisements for new staff

• Ensuring that workers are given fringe benefits

Which of the following best describes loss leaders?

• An item which the retailer gives away to customers

• A product which is sold cheaply to attract customers

• A good which has no real market value

• A product which the retailer is unable to locate.

Which of the following is LEAST likely to be described as a good public relations for a company?

• The offering of scholarships

• Sponsorship of a steel band

• Reduction in prices to retailers

• Hosting of an annual sport event

Which of the following are functions of management?

i. Co-ordinating the work of employees

ii. Delegating work to subordinates

iii. Controlling employees and raw materials

iv. Ensuring that employees join a trade union

• I and II only

• II and III only

• I, II, and III only

• II, III and IV only

Which of the following situations would occur if a contract for the sale of goods becomes void?

I. The prospective buyer becomes the owner

II. The seller has the right to keep any money or goods which have been given to him in this transaction

III. The prospective buyer does not become the owner

IV. The seller must return any money or goods given to him by the prospective buyer for the transaction.

• I and IV only

• II and III only

• III and IV only

• I, II, and IV only

Which of the following is NOT an example of a secondary source of information?

• Interview

• Reports

• Text book

• Online surveys

Which of the following is an example of tertiary production?

• The legal services provided by a lawyer

• The making of steel from iron-ore

• The making of shoes using mostly leather

• The fishing done by a trawler