Introduction to Principles of Business

The basic needs of man are

• land, money, car

• food, money, land

• food, clothing, shelter

• food, shelter, wifi

Good or a service? Buying a pair of new shoes

• good
• service

A doctor is giving you a check up. Is this a good or service?

• good
• service

The most important principle upon which barter depends is known as:

• insurable interest

• indemnity principle

• utmost good faith

• double coincidence of wants

Mary lives in a country in which the state makes all the decisions about economic activities. That country has adopted the:

• planned economic system

• mixed economic system

• free economic system

• Capitalist economic system

The most important role of a business in any community is to:

• pollute the environment

• earn foreign exchange

• provide revenue for the government

• provide goods and services to satisfy the wants of people

Consumers are those individuals who:

• buy their goods from a consumer’s cooperative society

• consume all the goods produced by manufacturers

• provide goods and services for our satisfaction

• utilise the goods and services provided to satisfy wants

The public sector comprises:

• a body of public corporations, public companies and municipal undertakings

• a combination of public companies and public corporations

• an association of all public companies within the country

• central and local government organisations and state corporations

Which of the following business organisations belong to the private sector?

• municipal authority

• nationalised industries

• public corporations

• public limited companies

In a partnership, an investor is a partner.

In a large company, an investor is a:

• sole trader

• manager

• director

• shareholder