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WorksheetsSECTION 1 - NATURE OF BUSINESS
Total questions: 20
Worksheet time: 20mins
Main features of e-commerce include:
I. enables the use of electronic funds transfer.
II. knowledge management
III. service can be available anywhere and anytime
IV. facilitates improved inventory management
All of the above.
I, II and IV.
I, III, and IV.
II, III and IV
E-commerce is specifically
a business using electronic media to conduct business
the electronic process of selling goods
the process of buying and selling products using the internet
the process of electronic funds transfer
A key disadvantage of a Franchise agreement is
The franchisor gains recognition in a new market
The franchisee can use an internationally known name
The franchisee cannot introduce new products outside of the agreement in the place of business
The franchisor gains from royalty payments
Which of the following is NOT a key element of a credit union?
Depositors earn interest on their savings.
Members elect the management committee.
All credit unions are made of members of a particular group.
Members can borrow from the credit union.
Which of the following institutions is NOT part of the private sector?
Multi nationals
Conglomerates
Public companies
Public corporation
Which of the following defines the term 'public company'?
A company owned by the state or government.
A company owned by 2 to 50 shareholders.
A company whose shares are traded on the stock exchange.
A public sector profit making entity
A state owned organization established to provide national service is termed a:
Public company.
Public corporation.
Private company.
Municipal authority.
A key feature of a subsistence economy is:
Every community depended on the output of the government.
The people as well as the state owned the factors of productions.
Productivity was geared towards profit maximization.
Production was based on fulfilling basic needs for survival.
Which of the following statements are key disadvantages of a command or planned economy?
I. Limited choice of goods and services.
II. Provision of basic goods and services.
III. Provision of public goods.
IV. Lack of incentive for workers to be innovative.
All of the above.
I, II and III.
II, III and IV.
I and IV.
Key disadvantages of the free market or capitalist economy are:
I. No production of public goods.
II. Little or no government interference.
III. Complete freedom of choice.
IV. Large companies can limit competitive activity and create monopolies and cartels.
I, II and III
I and IV
I and III
All of the above.
Advantages of Mixed Economies include:
I. The public sector provides public goods such as street lights.
II. Increased choice of goods and services for consumers.
III. Government may seek to control private sector activity.
IV. Decision making in the economy is shared.
All of the above.
I, II and III.
II, III and IV.
I, II and IV.
People who conceptualize and undertake the risk of starting a business venture are specifically
superiors.
subordinates.
managers.
entrepreneurs.
Tax evasion, money laundering and insider trading are specifically
Unethical practices.
Illegal practices.
Misrepresentation.
Corrupt practices.
Misleading advertisements, testing products on animals, using expired food items in business is considered
Illegal.
Unethical.
Practical.
Economical.
The Finance department is responsible for all of the following functions, EXCEPT
money management in the entire business.
payroll system.
making statutory deductions.
performance management systems
'Duty to pay for work done' is a key function of which stakeholder group?
Employees.
Employers.
Shareholders.
The Society.
A major function of the Government in business activities is
to buy goods and services.
to set up the legal frame work for business conduct and operations.
to compete with businesses.
to train business persons.
The stakeholder group most likely to be interested in the financial performance of a business is:
Suppliers.
Competitors.
Shareholders.
Employees.
A decision to cut jobs as part of a cost-reduction strategy is most likely to be opposed by which stakeholders?
Suppliers and Customers.
Employees and the Local Community.
Shareholders and Customers.
Management and Competitors.
A Stakeholder is any individual or organization who has:
a vested interest in activities and decision-making of a business.
transacted with a business.
a commercial relationship with a business.
a shareholding in a business.
