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Principles of Business

Total questions: 60

Worksheet time: 3hrs 0mins

Name
Class
Date
1.

The exchange of goods and services without the use of money is called

a)

trade

b)

exchange

c)

barter

d)

selling

2.

The most important principle upon which barter depends is known as:

a)

insurable interest

b)

indemnity principle

c)

utmost good faith

d)

double coincidence of wants

3.

What is a business?

a)

Goods and services that are necessary for survival

b)

Goods and services that are not necessary for survival

c)

an organisation that meets the needs and wants of customers

d)

someone who buys goods and services

4.
This type of business is owned by one person.
a)
Partnership
b)
Sole Proprietorship
c)
Corporation
d)
Franchise
5.
This type of business is a contractual agreement with a parent company to sell its products/services in an area.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
6.
This type of business is owned by two or more people.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
7.
McDonald's and Burger King are examples of....
a)
Sole Proprietorships
b)
Partnerships
c)
Corporations
d)
Franchises
8.
Advantages of this business type are that the owner is their own boss and gets to keep all the profits.
a)
Partnership
b)
Sole Proprietorship
c)
Corporation
d)
Franchise
9.
Advantages of this business include: easier to get money from the bank to start, share skills and share risks.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
10.
Advantages of this type of business include: easy to start, and you can rely on a good company name and expertise.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
11.

Disadvantages of this type of business include: parent company is strict, you are limited in what you sell, and you must operate like every other franchise.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Franchise

12.

Which of the following is a disadvantage of franchise?

a)

assistance from a parent company

b)

name recognition

c)

shared advertising expenses

d)

must follow parent company business structure

13.

2. Mario and his brother Luigi started a plumbing company together. They split the profits and the expenses.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

14.

3. Mary opened a dance studio. She receives all the profits from her students’ lessons.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

15.

Dan, Tony, and Mac own a pizza parlor. They rotate hours and days off.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

16.

Select the best definition from The following for the term: Accounting

a)

The activities that deal with the hiring, firing, training and other personnel (employee) issues.

b)

The process of developing, installing, and implementing computer information systems and applications.

c)

The process of recording and reporting the financial data for a business.

d)

The process of creating, promoting, and presenting a product to the consumers.

17.

Select the best definition from The following for the term: Human Resources

a)

The activities that deal with the hiring, firing, training and other personnel (employee) issues.

b)

The process of developing, installing, and implementing computer information systems and applications.

c)

The process of recording and reporting the financial data for a business.

d)

The process of creating, promoting, and presenting a product to the consumers.

18.

Select the best definition from The following for the term: Information Technology

a)

The activities that deal with the hiring, firing, training and other personnel (employee) issues.

b)

The process of developing, installing, and implementing computer information systems and applications.

c)

The activities involved in the day-to-day running of a business for the purpose of producing value for the stakeholders.

d)

The process of creating, promoting, and presenting a product to the consumers.

19.

Select the best definition from The following for the term: Marketing

a)

The activities that deal with the hiring, firing, training and other personnel (employee) issues.

b)

The process of creating, promoting, and presenting a product to the consumers.

c)

The process of recording and reporting the financial data for a business.

d)

The activities that deal with the hiring, firing, training and other personnel (employee) issues.

20.

Select the best definition from The following for the term: Management

a)

The activities that deal with the hiring, firing, training and other personnel (employee) issues.

b)

The activities involved in the day-to-day running of a business for the purpose of producing value for the stakeholders.

c)

The process of creating, promoting, and presenting a product to the consumers.

d)

The process of leading and directing all or part of an organization.

21.

The basic needs of man are

a)

land, money, car

b)

food, money, land

c)

food, clothing, shelter

d)

food, shelter, wifi

22.

The most important role of a business in any community is to:

a)

pollute the environment

b)

earn foreign exchange

c)

provide revenue for the government

d)

provide goods and services to satisfy the wants of people

23.

The public sector comprises:

a)

a body of public corporations, public companies and municipal undertakings

b)

a combination of public companies and public corporations

c)

an association of all public companies within the country

d)

central and local government organisations and state corporations

24.

Which of the following business organisations belong to the private sector?

a)

municipal authority

b)

nationalised industries

c)

public corporations

d)

public limited companies

25.

Select all the parties (stakeholders) that likely benefit when a business does well:

a)

Owners

b)

Government

c)

Customers

26.

Mikel grows cassava and fresh seasoning for his personal use:

a)

Direct production

b)

Indirect production

c)

Import production

d)

Simple production

27.

Dimitri grows Corn and Pigeon Peas for his family use but also sells excess to the local supermarket

a)

Direct production

b)

Indirect production

c)

Import production

d)

Simple production

28.

What is a Check?

a)

Plastic card for payment

b)

Dated and signed payment instruction

c)

Electronic transfer of funds

d)

Direct payment from bank account

29.

What is the main characteristic of a barter system?

a)

Goods and services are exchanged for credit cards

b)

Goods and services are exchanged for gold or silver

c)

Goods and services are exchanged for money

d)

Goods and services are exchanged for other goods and services directly

30.

What does it mean for money to be a unit of measure?

a)

Money can only be saved but not spent

b)

Money has no value in transactions

c)

Money helps determine the relative value of products and services

d)

Money can only be used for one specific product

31.

Which characteristic does money need to possess?

a)

Valueless

b)

Tangible

c)

Store of value

d)

Limited supply

32.

Which of the following is NOT a function of money?

a)

Medium of exchange

b)

Store of value

c)

Unit of account

d)

Measure of productivity

33.

For an item to be considered money, it must be:

a)

Physically attractive

b)

Widely accepted in exchange

c)

Difficult to divide

d)

Valued for its intrinsic worth

34.

Which characteristic of money refers to its ability to be easily divided into smaller units?

a)

Portability

b)

Divisibility

c)

Durability

d)

Stability

35.

Which of the following functional areas of a business is most likely to be responsible for recruiting new staff?

a)

Business support services

b)

Finance

c)

Human resources

d)

Production

36.

Which of the following functional areas of a business is most likely to be responsible for producing a radio advertisement to raise awareness of its new product?

a)

Customer service

b)

Marketing

c)

Production

d)

Sales

37.

Which of the following functional areas is responsible for converting inputs into outputs?

a)

Finance

b)

Production

c)

Research and Development

d)

Sales

38.

Which one of the following is a task which is most likely to be carried out by an employee working in the research and development department of a chocolate bar manufacturer?

a)

Create new recipes

b)

Design an advertising campaign

c)

Find cheaper suppliers of ingredients

d)

Redesign the packaging label

39.

The human resources function of a large organisation is most likely to support the finance function by:

a)

purchasing a new accounts package

b)

recruiting an additional accountant

c)

updating its supplier database

d)

using social media to encourage more sales

40.

The IT function of a large organisation is most likely to support the sales function by:

a)

backing up employee records

b)

creating a production schedule

c)

updating payroll software

d)

upgrading a customer database

41.
Which phrase best describes a functional area?
a)
A department within a business
b)
A group of customers
c)
A supplier
d)
Different branches of business
42.
Which of the following functional areas is responsible for motivation schemes?
a)
Human Resources
b)
Finance
c)
Administration
d)

Production

43.

Which of the following tasks is most likely to be performed by the finance department?

a)

Developing new product designs

b)

Managing the company's budget

c)

Recruiting new employees

d)

Creating marketing strategies

44.

Which of the following functional areas is most likely to handle employee training programs?

a)

Finance

b)

Human Resources

c)

Marketing

d)

Production

45.

The marketing function of a large organisation is most likely to support the sales function by:

a)

designing promotional materials

b)

managing payroll

c)

conducting performance reviews

d)

overseeing production schedules

46.

What are the three basic questions that every economic system must answer?

a)

What's produced?

b)

How's it produced?

c)

Who sells it?

d)

Who consumes it?

47.

In which economic system does the government have the most control?

a)

Traditional

b)

Command

c)

Mixed

d)

Market

48.

Which economic system allows for the most individual freedom?

a)

Mixed

b)

Market

c)

Command

d)

Traditional

49.

What is the economic system of most communist countries?

a)

Command

b)

Traditional

c)

Market

d)

Mixed

50.

Businesses make economic decisions, but the government regulates them to make sure they’re safe/fair.

a)

Mixed

b)

Traditional

c)

Command

d)

Market

51.

the limited supply of something

a)

scarcity

b)

bartering

c)

economics

d)

free enterprise

52.

Which function of management is involved in determining organizational goals or objectives?

a)

Planning

b)

Organizing

c)

Leading

d)

Controlling

53.

Analyzing information and making decisions about what needs to be done is known as

a)

communicating

b)

planning

54.
What are stakeholders?
a)
Anybody who knows the name of the business
b)
Anybody who takes an interest in a business
c)
Anybody who works for the business
d)
Anybody who buys from the business
55.
True or False: stakeholders can be internal and external.
a)
True
b)
False
56.
Which of the following is NOT an example of a stakeholder?
a)
Customers
b)
Shareholders
c)
Local Community 
d)
Children
57.
As a stakeholder, what interest would customers have in a business?
a)
Working Conditions
b)
Payment Methods
c)
Increase Profits
d)
Paying Taxes
58.
As a stakeholder, what interest would the local community have in a business?
a)
Following Legislations
b)
Expansion
c)
Payment Methods
d)
Staff Pay
59.
As a stakeholder, what interest would the suppliers have in a business?
a)
Following Legislations
b)
Business Relationships
c)
Payment Methods
d)
Staff Pay
60.
As a stakeholder, what interest would the employees have in a business?
a)
Following Legislations
b)
Business Relationships
c)
Payment Methods
d)
Staff Pay