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ASSESSMENT 1

Total questions: 30

Worksheet time: 24mins

Name
Class
Date
1.

Which of the following is NOT a factor of production?

a)

land

b)

labour

c)

entrepreneur

d)

capital

e)

Risk

2.

The term which indicates that an organization is a legal entity is called..........

a)

corroborated

b)

franchise

c)

incorporation

d)

enterprise

3.

Which of the following is a consumer good?

a)

tools

b)

delivery van

c)

tractor

d)

smartphone

e)

market research

4.

The organization which often provides health care, education, policing, fire service and environmental services is called.......

a)

private enterprises

b)

social enterprises

c)

public enterprise

d)

none of the above

5.

An individual or group that has an interest in the operation of a business is called......

a)

owner

b)

stakeholder

c)

customer

d)

financier

6.

Which of these is designed to satisfy a need?

a)

potato crisps

b)

cricket bat

c)

bread

d)

smartphone

7.

External factors that might likely cause the business environment to change include all BUT the following.

a)

strength of the competiton

b)

workers motivation

c)

the economic climate

d)

government legislation

e)

population trends

8.

Which of the following is not a producer good?

a)

smartphone

b)

tools

c)

tractor

d)

sugar cane

9.

Human wants are infinite. True or False?

a)

True

b)

False

10.

Which of the following might be a reason for setting business objectives?

a)

Employees need something to work towards.

b)

Owners need motivation to keep the business afloat.

c)

It makes it easier to assess objectives.

d)

all of the above

e)

undecided

11.

Name ONE financial objective of a business.

(a)  

12.

Name ONE non-financial objective of a business.

(a)  

13.

What does the acronym 'SMART' meaning when discussing objectives?

(a)  

14.

Name the four roles played by entrepreneurs.

a)

innovators, risk takers, deliberators and motivators

b)

deliberators, decision makers, legislators and innovators

c)

innovators, decision makers, risk takers and organizers

d)

financiers, legislators, educators and moderators

15.

The simplest form of business organisation is

(a)  

16.

One disadvantage of partnerships is

a)

easy to set up

b)

any partner's decision is legally binding

c)

shared responsibility

d)

Partners can specialise in their area of expertise

e)

none of the above

17.

A business structure in which a business allows another operator to trade under their name is called (a)  

18.

Limited liability shareholders are not legally responsible for the debts of a company according to how many shares they own. True or false?

a)

true

b)

false

19.

Name one of the important documents needed to be submitted to the registrar of companies before a limited company can be formed.

(a)  

20.

The minimum number of members required for the setting up of a limited company is (a)  

21.

The tag or term 'PLC' is usually associated with which type of business organization?

(a)  

22.

Khan Sugar Mills Ltd operates as a private limited company and made a profit of PKR 543.5 million in 2015. Three of the brothers own majority of the business but in 2001, FarmVent took a stake in exchange for funding. Some of the senior managers also own a small stake. Who controls Khan Sugar Mills Ltd?

(a)  

23.

What is meant by the term 'Multinational'?

4 lines
24.

Which document would be issued to a limited company giving it permission to trade?

a)

memorandum of association

b)

articles of association

c)

certification of incorporation

d)

prospectus

25.

Selling shares to the public for the first time to raise capital for a company is called a:

a)

flotation

b)

prospectus

c)

joint venture

d)

venture capital

26.

Some reasons against the public ownership of businesses include:

a)

to avoid wasteful duplication

b)

maintain control of strategic industries

c)

to save jobs

d)

fill the gaps left by the private sector

e)

cost to government

27.

The process of transferring public sector resources to the private sector is called...

(a)  

28.

Privatization can take the form of:

a)

sale of public corporation

b)

deregulation

c)

contracting out

d)

all of the above

29.

An industry where efficiency is improved if there is only one operator is called

a)

segmented industry

b)

saturated industry

c)

natural monopoly

d)

oligopoly

30.

Which of the following is a feature of a public corporation/

a)

it s owned by the board of directors

b)

it is funded by the government

c)

it aims to maximize profits

d)

it is not accountable to anyone