POB Mock Examination Paper 1

The basic needs of man are

• land, money, car

• food, money, land

• food, shelter, clothing

• food, shelter, money

The most important principle upon which barter depends is

• insurable interest

• idemnity

• utmost good faith

• double coincidence of wants

A breach of contract may happen as a result of

• non-performance

• death of a party

• lack of consideration

• invitation to treat

The relationship between the highest level of management down to the various departments is known as

• flow

• staff

• rank

• line

Which of the following can belong to the private sector?

• municipal authority

• nationalised authority

• public corporation

• public limited company

To comply with legal requirements to register a private company, a firm must provide which two documents?

• prospectus and certificate of origin

• memorandum and articles of association

• certificate and trading tax number

• a share certficate and a debenture certificate

The policies of a company are formulated by the

• shareholders

• managers

• directors

• auditors

From which of the following commercial organisations might any member purchase shares?

• cooperatives

• the Central Bank

• private companies

• government agencies

In a free economy, goods and services are provided by the

• public sector only

• private sector only

• public and private sectors

• central planning committees

The organisation chart of a firm shows

• the responsibilities of each manager

• the order of efficiency of each manager

• the lines of authority

• the range of salaries earned by managers based on their levels