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POM Sessional 1 Sec D (13-12-21)

Total questions: 10

Worksheet time: 7mins

Name
Class
Date
1.

Q. A form of business organization that is authorized to act as a legal entity regardless of the number of owners. 

a)

corporation 

b)

proprietorship

c)

partnership

d)

distributor

2.

The Dow Jones industrial average swept past 12,000 for the first time. Investors are increasingly optimistic about corporate earnings and the economy. This achievement MOST likely involved which type of business organization?

a)

partnership

b)

conglomerate

c)

proprietorship

d)

corporation

3.

 Easy to start, Owner is his/her own boss, Owner keeps all the profits - These are advantages of what type of business

a)

Franchise

b)

Sole Proprietorship

c)

Corporation

d)

Partnership

4.

. Joe is starting a small home-based consulting business. He possesses computer knowledge but lacks marketing skills. The form of business ownership that Joe might consider establishing is a(n)

a)

corporation

b)

sole proprietorship

c)

monopoly

d)

general partnership.

5.

Which of the following in/are (an) argument(s) in favour of CSR?

a)

Businesses that assist the community in which they operate through CSR programmes receive greater support from the community.

b)

Business must act on social issues in their communities or else customers will move away from the area. E.G. Increased poverty may lead to increased crime which will drive people away.

c)

CSR detracts from the business's core activities.

d)

Businesses that operate in sustainable ways are usually also innovate enough to identify additional avenues of income.

6.

The losses which can be made good or losses for which company can get compensation from the insurance company are called

a)

1.   Non-insurable Risks

b)

1.   Insurable Risk

c)

Business RIsk

d)

All of the Above

7.

1.   Avoid itself from entering into a risky transaction;

2.   Preventive measures can be taken like firefighting;

3.   Transfer the risk to an insurance company by taking a policy:

4.   Share risk with other enterprises by making the manufacturers agree to compensate the losses in the case of falling prices.

These are the examples of:

a)

Risk Aversion in Business

b)

Risk Avoidance in Business

c)

Both of theses

d)

None of these

8.

Ownership capital is also known as .......... capital

a)

Sole-proprietor capital

b)

Risk Capital

c)

Short term Capital

d)

Long term Capital

9.

. . . . . . . . . . capital is sometimes called revolving or circulating capital.

a)

Ownership Capital

b)

Short Term Capital

c)

Long Term Capital

d)

None of the Above

10.

Relatively more fixed capital is required by manufacturing companies than trading companies.

a)

True

b)

False