Test 1 Principles of Business

Which of these belong to the private sector?

(i) Partnership (ii)Nationalized industry (iii) Sole Trader (iv) State Corporation

• (i) and (iv) only

• (i) and (iii) only

• (ii) and (iii) only

• (ii) and (iv) ony

Which is a major feature of a planned economy?

• the state owns the factors of production

• the rich become richer whilst the poor become poorer

• there is little competition among firms

• consumers determine what to produce

The creation and use of money was as a result of:

• the absence of valuable goods and services

• the need for a common measure of value

• the desire for people to save and spread wealth

• the need for competitive advantage in trade

'Man is an economic animal'. What does this mean?

• man exchanging goods and services

• man producing goods and services

• man satisfying his basic needs and wants

• man seeking help to solve his problems

All are true of the Barter system except one:

• a person could wait a long time before she found a trading partner

• true values of items or services is always obtained

• a person is able to get what he didn't produce

• exchange of goods and services occur without money

Organic growth happens when a company expands by using its own resources.

• True

• False

One benefit of an internal growth strategy is that it allows the business to grow at a more sensible rate.

• True

• False

The recent merger of RJR an Gleaner is a perfect example of an inorganic growth strategy.

• True

• False

Miss Birdie manufactures biscuits and baked goods for the local retailers. It obtains its raw materials from the local flour mill. This is an example of a:

• internal linkage

• supply chain

• backward linkage

• international linkage

How is revenue obtained to conduct business in the public sector?

• from profits

• from the private sector

• from taxation

• from the government