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WorksheetsPrinciples of Business Revision Quiz #2
Total questions: 60
Worksheet time: 45mins
A system involving the exchange of goods depending on the ‘double coincidence of wants’ is known as:
money
barter
specialization
equal exchange
Which of the following is NOT a function of money:
Measure of value
Medium of exchange
Not divisible
Store of value
From which of the following commercial organizations might any member of public be allowed to purchase shares?
Government agency
The Central bank
Co-operatives
Private Companies
A hotel gives vouchers for meals to its employees. This form of incentive is BEST described as a
reward
bonus
motivation schemes
fringe benefits
Which of the following are distinguishing features of capital-intensive production? I. An increase in output
II. An increased labour force
III. A reduction in the unit cost
I and III only
I and II only
II and III only
I, II and III
Which of the following is a definition of working capital?
Fixed capital minus stocks
Current assets minus current liabilities
Fixed capital plus current assets
Current liabilities plus stock
Which of the following are the functions of a business unit?
I. Production of goods and services
II. Creation of jobs
III. Maximization of sales
IV. Education of workers
I, II and IV only
I, III and IV only
I , II and III only
II, III and IV only
In which department of a manufacturing business would you MOST LIKELY find an engineer?
Production
Personnel
Marketing
Financial
Primary production is concerned with
manufacturing industries
commercial industries
constructive industries
extractive industries
The machinery used in rice growing would be defined by which of the following factors of production?
enterprise
land
capital
labour
Which of the following provides the BEST explanation for the rising productivity of labour in an enterprise
More labour is being employed
Labour is working more efficiently with existing capital
More output is being produced in total
The business is employing less capital than before
An advantage of small businesses to a country is that they?
Do not employ economies of scale
Create employment, particularly in rural areas
Have a relatively short life-span
Provide a drain on the financial resources of a country
Employers and employees will appoint an arbitrator to resolve work issues when:
They are seeking suggestions rather solutions to a conflict issue
They feel that they are in a weak bargaining position
An issue appears to have an easy resolution
They can both trust the arbitrator come up with a fair resolution
Two industries ae regarded as ‘linkage industries’ if:
the industries are located next each other because they use the same raw materials
they combined their finished products to control output on the market.
the finished product of one industry is used as input of another industry
the waste products of one industry are used by the other industry
An example of organic growth in a business would be
Merging with another company
Ploughing back profit into the business
Forming a joint venture
Taking over a rival business
Which of the following are distinguishing features of capital-intensive production? I. An increase in output
II. An increased labour force
III A reduction in the unit cost
I and III only
I and II only
II and III only
I, II and III
An authoritarian leader is one who
allows workers to plan their own work
consults with those likely to be affected by the decision
makes decisions without consultation
takes suggestion from employees
Which of the following exemplifies good leadership?
I. Motivating subordinate staff
II. Providing more goods at a lower cost
III. Giving direction to the organization
IV. Implementing established plans
I, II and III only
II, III and IV only
I, II and IV only
I, III and IV only
The workers in a large organization are dissatisfied with the working conditions. The trade union representatives’ first likely action will be to
have discussions with the personnel officer
encourage employees to adopt go slow tactics
encourage the workers to take strike action
request a meeting with the board of directors
The purpose of the business plan is to?
I. measure the performance of business
II. attract financing to the business
III. communicate the business ideas others
IV. provide direction for the business operations
I and II only
I and IV only
I, II and III only
II, III and IV only
The policies of a company are formulated by the:
shareholders
directors
auditors
managers
Capital as a factor of production refers to:
goods that are used to produce other goods
assets that are owned by the firm
money that is used to purchase goods
goods purchased for resale
Which of the following are functions of small firms?
I. The provision of goods and services
II. The offering of personalized services
III. The production of exclusive articles
IV. The reduction in the demand for labour
I, II and III only
I, II and IV only
I, III and IV only
II, III and IV only
Private enterprise is run MAINLY to:
create profit
reduce inflation
distribute goods and services fairly
provide jobs for more people
Which of the following is MOST likely to occur when a member of a partnership dies:
A new partner is brought in
The government takes over the business
The business becomes a joint company
The business is closed down
In a public limited company the loss is borne by the:
community
shareholders
directors
staff
The manager of ABC Company has embarked on sponsoring a school cricket team in a Caribbean territory. The company is fulfilling its
Social obligations
Obligation to customers
Economic obligation
Obligation to maximize surpluses
Which of the following management practices is likely to contribute to the success of a business:
Pricing at maximum mark-up
Communicating with employees
Earning a maximum profits for owners
Selling expensive products
Which of the following responsibilities must be assumed by the management of a company?
I. Maximizing efficiency and creating surpluses
II. Maintaining good communication and human relations
III. Producing goods of marketable quality
IV. Determining dividends to be paid to shareholders
I only
I and IV only
I, II and IV only
I, II, III and IV
Which of the following are functions of management?
I. Co-ordinating the work of employees
II. Delegating work to sub-ordinates
III. Controlling employees and raw materials
IV. Ensuring that employees join a trade union
I and II only
I and III only
I, II and III only
II, III and IV only
The term ‘human resources refers to:
Materials and goods made by human beings
Raw materials used in the manufacture of goods
Person available for productive and professional services
Capital invested by shareholders in a company
A cottage industry can be BEST described as :
a small scaled industry centered at home
an industry where family members are involved
an industry with pronounced use of manual processes
an industry that sells to local consumers
Production is not complete until the:
items manufactured have been priced
consumer has received the finished goods
manufacturer has produced the last item
products have been sold to the wholesaler
Domestic consumption refers to
goods and services produced in a country
the use of goods produced by citizens
a small turnover of goods and services
production of goods and services within the home
Which of the following is NOT a major functional area of a business?
Finance
Marketing
Taxation
Production
The person who takes the initiative is production is called a/an:
supervisor
entrepreneur
expert
shareholder
A sole trader can be BEST described as one who:
Sells the goods which he produces
does all the work in his business including manual work
is totally responsible for all the liabilities of his business
only trades with other sole traders
Which of the following management practices is likely to contribute to the success of a business:
Selling expensive products
Earning a maximum profits for owners
Pricing at maximum mark-up
Communicating with employees
John Dacres is an ordinary shareholder of a public company. Which of the following would be true?
He is one of the owners of the assets of a company
He is entitled to a bonus from the profits of the company
The company must repay him the value of his shares when he decides to sell
His shares can only be sold by the company
All of the following individuals are engaged in business. Which of the following examples is a partnership
Barry and Neville together finance and operate a service station at the corner of Brook and Mavis Avenues
Donna operates a hairdressing palour in the uptown section of the city, while her brother John operates a barber salon beside her
The Ministry of Public Utilities centralizes the water supply system under the control of the National Water Commission
Johnston and his wife recently bought shares in the National Commercial Bank
The real value of money is measured by its:
metallic value
paper value
purchasing power
supply and demand
Fixed capital:
is the amount required to meet the daily needs of the business
is the legal amount of capital a company may own
relates to permanent assets
never changes in value
An organization chart is used to
organize the workers in a business
inform workers of their position in the firm
give the manager guidelines for his workforce
set out the various tasks for the workers
When a person goes to the bank to borrow money, which of the following should he have in his possession in order to secure the loan?
standing order
guarantee
overdraft
collateral
In a country where there is some amount of private enterprise and some government planning, the economy is more suitably described as:
Free enterprise
Mixed
Under-developed
Planned
The legally written permission given to a company to operate in a country is called:
Prospects
Memorandum of Association
Articles of Association
Certification of Incorporation
An association of the firm in a particular industry is called:
company
trade association
financial institution
partnership
The membership of a partnership:
must not exceed two persons
must be minimum of seven persons
can range from two to twenty persons
can range from two to fifty person
Workers at Samson Shoe Company went on strike because they were not happy with the work they were doing. Which of these measures should the manager use to get them to be more involved in the work :
Involve them in the planning of the job operations
Start a motivational programme from which they will benefit
Send them on leave
Improve supervision
Mr. Turner is the manager of a business enterprise. He gives all the orders makes all the rules and decisions. What kind of leader is he?
Laissez-faire
Democratic
Charismatic
Autocratic
If the cost of production in an industry goes up, the industry is most likely to?
set a new price for the commodity
experience losses in the long run
produce less goods
cease operation in a short time
Which of the organizational structure below is responsible for direct supervision of personnel in a business enterprise?
Functional organization
Staff organization
Committee organization
Line organization
The taking-over of an industry by the state and handing it over to a public corporation is known as?
Political seizure
Mobility of labour
Nationalization
Localization of industry
All of the following factors affect the supply of labour EXCEPT?
Education and training
Age distribution of population
Size of the population
Compulsory school leaving and retirement age
The main difference between formal and informal relationships in a business is that?
The informal channel tends to take longer, while the formal channel is faster
One gives directive from management, while the other gives instruction from supervisor
The formal channel is official whereas the informal is not binding
The informal channel is binding even if it is contrary
The articles of Association is one of the documents presented to the Registrar of Companies. One purpose of this document is to
Limit the amount of profit the company can make
Protect the rights and privileges of the shareholders
Prevent too many monopolies from developing
Inform workers in the firm of their rights
Judy is a partner in Judean’s Enterprise. She has agreed to only contribute the capital and take no active part in the business. She will be a/an
Limited partner
General partner
Active partner
Dormant partner
The surplus of a credit unit amounts to $45,000. There are 720 members and they received an equal amount of dividend. Each member should get
$ 62.50
$125.00
$250.50
$500.00
For a company to raise capital from the public, its directors must issue a?
Certificate of incorporation
Prospectus
Proposal
Certificate of fitness
A management team that wants the business to remain profitable despite stiff challenges from competition should
Cut production costs even if it mean lowering the quality of the product
Lower their prices and increase their of the market
Make plans to improve and expand the range of goods and services offered
Waste no time in doing what their competitors do
