Principles of Business Revision Quiz #2

A system involving the exchange of goods depending on the ‘double coincidence of wants’ is known as:

• money

• barter

• specialization

• equal exchange

Which of the following is NOT a function of money:

• Measure of value

• Medium of exchange

• Not divisible

• Store of value

From which of the following commercial organizations might any member of public be allowed to purchase shares?

• Government agency

• The Central bank

• Co-operatives

• Private Companies

A hotel gives vouchers for meals to its employees. This form of incentive is BEST described as a

• reward

• bonus

• motivation schemes

• fringe benefits

Which of the following are distinguishing features of capital-intensive production? I. An increase in output

II. An increased labour force

III. A reduction in the unit cost

• I and III only

• I and II only

• II and III only

• I, II and III

Which of the following is a definition of working capital?

• Fixed capital minus stocks

• Current assets minus current liabilities

• Fixed capital plus current assets

• Current liabilities plus stock

Which of the following are the functions of a business unit?

I. Production of goods and services

II. Creation of jobs

III. Maximization of sales

IV. Education of workers

• I, II and IV only

• I, III and IV only

• I , II and III only

• II, III and IV only

In which department of a manufacturing business would you MOST LIKELY find an engineer?

• Production

• Personnel

• Marketing

• Financial

Primary production is concerned with

• manufacturing industries

• commercial industries

• constructive industries

• extractive industries

The machinery used in rice growing would be defined by which of the following factors of production?

• enterprise

• land

• capital

• labour