SECTION 1 - NATURE OF BUSINESS

Main features of e-commerce include:

I. enables the use of electronic funds transfer.

II. knowledge management

III. service can be available anywhere and anytime

IV. facilitates improved inventory management

• All of the above.

• I, II and IV.

• I, III, and IV.

• II, III and IV

E-commerce is specifically

• a business using electronic media to conduct business

• the electronic process of selling goods

• the process of buying and selling products using the internet

• the process of electronic funds transfer

A key disadvantage of a Franchise agreement is

• The franchisor gains recognition in a new market

• The franchisee can use an internationally known name

• The franchisee cannot introduce new products outside of the agreement in the place of business

• The franchisor gains from royalty payments

Which of the following is NOT a key element of a credit union?

• Depositors earn interest on their savings.

• Members elect the management committee.

• All credit unions are made of members of a particular group.

• Members can borrow from the credit union.

Which of the following institutions is NOT part of the private sector?

• Multi nationals

• Conglomerates

• Public companies

• Public corporation

Which of the following defines the term 'public company'?

• A company owned by the state or government.

• A company owned by 2 to 50 shareholders.

• A company whose shares are traded on the stock exchange.

• A public sector profit making entity

A state owned organization established to provide national service is termed a:

• Public company.

• Public corporation.

• Private company.

• Municipal authority.

A key feature of a subsistence economy is:

• Every community depended on the output of the government.

• The people as well as the state owned the factors of productions.

• Productivity was geared towards profit maximization.

• Production was based on fulfilling basic needs for survival.

Which of the following statements are key disadvantages of a command or planned economy?

I. Limited choice of goods and services.

II. Provision of basic goods and services.

III. Provision of public goods.

IV. Lack of incentive for workers to be innovative.

• All of the above.

• I, II and III.

• II, III and IV.

• I and IV.

Key disadvantages of the free market or capitalist economy are:

I. No production of public goods.

II. Little or no government interference.

III. Complete freedom of choice.

IV. Large companies can limit competitive activity and create monopolies and cartels.

• I, II and III

• I and IV

• I and III

• All of the above.