WorksheetsBusiness Basics- End of Term Exam
Total questions: 25
Worksheet time: 22mins
The main function of a business is to:
provide goods and services
cater to the well-being of citizens
creates employment
promote local industry
Goods and services are produced mainly because:
there is a demand and use for them
there are too many producer
there are too many consumer
credit is easily obtained
Which of the following is not part of the group?
Jones& Partners Ltd.
R. Penny Ltd
Tare& Sons Ltd
J. Salesworthy PLC
Limited liability means that the shareholders:
are responsible for all the debts of the company up to their private possessions.
are responsible for all the debts of the company up to the amount that they have already contributed.
are not responsible for any debts of the company except those sanctioned at an annual general meeting.
are responsible for all the debts of the company up to the nominal value of their shareholdings.
A sleeping partner is one who:
takes no active part in running the business
has no responsibility for the debts of the business
is not included in the partnership deed
a lazy member of the business
The membership of a partnership
can range from one to twenty persons
can range from two to twenty persons
can be a minimum of seven persons
must not exceed two person
One advantages of the sole trader is:
the ability to utilize different person for specific tasks
easy to set up
the swift continuance of business despite challenges
using careful strategies in its operations
Which of the following characteristics of the sole trader is not an advantage to him?
having a close relationship with customers.
unlimited liability
getting all the profits
low cost to operate the business
Which of the following best assists persons in satisfying their basic needs?
money
recreation
travel
education
What is the maximum number of shareholders a private limited company can have?
2
10
20
50
Which of the following documents is not required to register a private company?
memorandum of association
article of association
prospectus
statement of authorized capital
All the following are forms of business organization except?
sole proprietorship
partnership
franchise
salvation army
Which of the following is most likely to occur when a member of a partnership dies?
closure of business
a new partner is brought in
the government takes over the business
the business becomes a joint stock company
Which of the following can have its shares traded on the stock exchange?
a partnership
a private company
a public company
a sole proprietorship
A partnership can be terminated by all of the following EXCEPT:
breach of contract
death of an employee
death of a partner
agreement
The partner who takes an active role in the daily operation of the business is a:
sleeping partner
temporary partner
general partner
permanent partner
Ease of formation, independence and simple organisational structure are all advantages of:
partnership
franchise
joint venture
sole trader
The main aim of a business is to:
provide a service
make a profit
help others
pay taxes
Assets are:
only money
anything of value to the business
people who work in the business
the owner of the business
Define the term 'capital'.
(a)
Define the term 'unlimited liability'.
(a)
State two reasons why businesses are established.
(a)
If there is no partnership deed, profits and losses are shared (a) .
List three sources of capital (where you can get money to start a business).
(a)
An 'entrepreneur' is a person that takes the risk of starting their own business. Why do you think someone would want to become an entrepreneur?
