Commerce - Quiz

Which of the following is not a characteristic of a public corporation?

• Assets are privately owned.

• They are not required to make a profit.

• General control is under a minister responsible to parliament.

• They were created by a special act of parliament.

Answer explanation

Assets are publicly owned in public corporations.

Select the advantage of privatization.

• Creates a divided society.

• Enhanced productivity.

• Higher costs to consumers.

Which of the following is a limitation of rail transport?

• Faster than road transport.

• Businesses can only send goods at the time trains run according to a fixed timetable.

• Convenient for travelling longer distances.

Choose the incorrect statement.

• When considering the form of transport to use the reputation of the carrier does not matter.

• Road is a major form of inland transport, as most places are connected with roads.

• Rail is better than other forms of transport when goods have to be carried faster over a large distance.

Answer explanation

When considering the form of transport to use the reputation of the carrier does matter.

Pick the correct statement.

• Air transport is suitable for people who live longer distances from the airport.

• Choosing an appropriate method of transport for sending goods and services is not one of the skills essential for business.

• An efficient transport system reduces the amount of capital needed to be tied up in stocks, because new supplies can be obtained quickly.

Select the incorrect statement about the different types of warehouses.

• Cold storage warehouses store perishables.

• General warehouses store all kinds of goods.

• Cash & Carry warehouses offers transport and credit services.

Which of the following is not a function of a warehouse?

• Advertising.

• Stabilizing prices by regulating demand.

• Stores/stocks large quantities of goods until they are required.

Choose the most suitable method of transport to carry valuables (e.g medicine)over larger distances.

• Rail

• Pipelines

• Air transport

• Sea transport

Select the incorrect statement about warehousing.

• Most modern warehouses do not use computerized systems for maintaining and managing their stocks.

• The work of packing and branding of finished goods and grading of raw materials is sometimes done in a warehouse.

• Warehouses do the work of collecting and storing goods produced in larger quantities, and later distributing them to wholesaler/retailer when required.

The compulsory purchase of private firms by the State is called