SARASWATI VIDYA NIKETAN

DIVALI TERM 2013 END OF TERM TEST

SUBJECT: PRINCIPLES OF BUSINESS DATE: …………………………………

CLASS: FORM 3 TIME: 1 HR 15 MINS.

NAME OF STUDENT: …………………………………………………………….

PAPER 1 (ANSWER ALL QUESTIONS)

1. What kind of business structure is Burger King?

(a) Franchise (b) Partnership (c) Conglomerate

2. The direct exchange of one article for another is called?

(a) Buying (b) Barter (c) Selling

3. House building is classified as?

(a) A manufacturing industry (b) a construction industry (c) a service industry

4. Which one of the following is an entrepreneur?

(a) Partner (b) shop assistant (c) Factory owner (d) council employee

5. Another name for the owners of a limited company is?

(a) Shareholder (b) managers (c) Limited Personnel

6. In a subsistence economy the main source of production is?

(a) Export (b) Manufacturing (c) Agriculture (d) Mining

7. A mixed economy is one which consists of?

(a) The provision of free social services (b) political party (c) both private and public sector

8. Which of the following is not a function of money?

(a) A measure of value (b) a substitute for cheques (c) a store of value (d) a medium of exchange

9. A sleeping partner is one who?

(a) Takes no active part In running the business (b) has no liability for the debt of the firm
( c) is not included within a deed of partnership (d) is a lazy member of the business

10. Which services are paid for by a franchisor?

(a) Training/advice/adverts (b) license (c) Local promotions
11. Where does the central government obtain its finance from?
(a) Grants (b) taxes (c) funds (d) concerts

12. Sasha has to find someone, Ricardo, who not only wants what Sasha has to exchange, but also possesses
the very thing that Sasha wants to obtain. What is this called?
(a) Barter (b) Exchange (c) Double coincidence of wants (d) trade

13. What does it mean to say money is ‘homogeneous’?

(a) Does not rot (b) can take it shopping (c) is similarly the same

14. Banknotes are an example of?

(a) Legal Tenders (b) bills of exchange (c) telebanking

15. Which is a legal formation in setting up a company?

(a) Legal formalities (b) Articles of Corporation (c) A registered office notice

16. What is the main aim of a Private Sector Business?

(a) To gain profits (b) to reduce growth (c) to take loans

17. Banks DIH Ltd. Is an example of a?

(a) Public limited company (b) Private Limited Company (c) Multinational Company

18. Which structures have unlimited liability?

(a) Cooperative/Sole trader (b) Sole trade/Shareholders (c) Partnerships/Public Limited Company

19. Breaking up work into different tasks is called?

(a) Division of labour (b) Separation of work load (c) Scale of production

20. What is the right of a supplier from the business?

(a) To be paid on time (b) to supply goods on time (c) to pass laws

END OF TEST
 SARASWATI VIDYA NIKETAN

DIVALI TERM 2013 END OF TERM TEST

SUBJECT: PRINCIPLES OF BUSINESS DATE:………………………….

CLASS: FORM 3 TIME: 2 HRS.

NAME OF STUDENT: ……………………………………………………..

PAPER II

CHOOSE ANY THREE (3) QUESTIONS

1. (a) STATE WHETHER EACH STATEMENT IS TRUE OR FALSE.

(a) We are not all Producers but we are all Consumers. ……………………
(b) Shareholders have limited liability in a Private Limited Company. ……………………..
(c) A franchisee is someone who owns the franchise. ……………………
(d) Government Departments are headed by Ministers of State. ……………………….
(e) An example of a public good is police. ……………………….
(f) A partnership has 2-50 persons. …………………….
(g) An example of a commodity is metals. ………………………..
(h) Profit is deficit made when revenue from the sale of products is less than costs. …………………
(i) An entrepreneur is someone who shows interest in a business. …………………..
(j) USA is a free market system. ………………………..

(b) You have just graduated from school and your partners have given you some money to start
your own business. Identify the type of business you would form and explain FOUR benefits
you would expect from setting this business up.
(20 marks)
2. Write a short essay of not more than 200 words outlining your knowledge on Franchise. Be sure to
include the advantages and disadvantages also.
(20 marks)

3. (a) Your friend wants to set up her own business. Discuss three reasons for establishing this
business including the definition for a business and enterprise.
(c) Define money and explain the functions of money. (20 marks)

4. (a) Define Stakeholder, Shareholder, trade and market.

(b) Explain TWO roles of each of the following:
- Suppliers
- Employees (20 marks)

THE END.