Principles of Business Exam

The exchange of goods or services for other goods and services without the use of money is called?

Barter

Surplus production

Trading

Exchange of goods and Services

In a situation where two people want what the other has to offercan be defined by which of the following terms:

Trading

Development of barter

Double coincidence of wants..

Which of the following is an advantage of barter?

It is difficult to save.

People can access goods that they do not produce.

Surplus production cannot be traded

Which of the following is a disadvantage of barter?

Certain goods cannot be broken up into money smaller units (in the way money can).

There is no need for money.

Surplus production can be traded..

You dont need to find someone willing to trade.

Durability & Portability are both characteristics of money.

True

False

Divisibility means: The item needs to consist of units so large sums can be broken down into smaller units.

True

False

Cheques is NOT a part of the Instruments of exchange.

True

False

Which of the following is a key component of a credit card?

Address

Account pin

Name of card holder

Amount of card

Which of the following is an enterprise that can be formed from a private sector:

Partnerships

Entrepreneur

Government department

Corportaion

This sector is said to be owned by the government.

Private Sector

Public Sector

A limlta1ion on the sum that owners of a business have to pay out to meet ◊ebts. The highest sum that owners would have to pay is the amount they invested in the business.

Limited Liability

Unlimited Liability

A sole tradership is very hard to set up.

True

False

A partnership can have 2 or more individualas to form.

True

False

Which of the following business is made up of a franchisor and a franchisee?

Corporation

Partnership

Franchise

Which of the following includes the three economic systems? ?

Planned, Controlled and mixed.

Planned , mixed and command.

Command, mixed and free market

Which of the following are two functional areas of s business?

Production and marketing

Marketing and Service

Production and resources

An individual or group that has a direct Interest in the decisions that a business makes.

Stakeholder

Employer

All the following are examples of stakeholders expect:

Employees

Owners

Government

Business partner

Ethical business behavior Is about •right" or moral behavior.

True

False

All are functions of management expect.

Planning

Controlling

Command

Directing

This function of management is considered the most important.

Motivating

Delegating

Coordinating

Organising

An organisational chart Is a visual representation of how an organisation is structured.

True

False

The chain of command shows the lines of responsibility In an organisation.

True

False

This term describes the number of people he or she manages or supervises directly.

Span of control

Chain of command

Line manger

Which of the following is not a characteristic of a good leader?

Honesty

Flexibility

Focus

Not making good decisions

Which of the following leadership styles best describes a leader who commands and tells others what to do?

Democratic

Autocratic

Transformational

Charismatic

The two strategies for motivating employees can fall under financial and non-financial?

True

False

Which sequence below best describes the communication process?

Sender- Message- Medium - Message -Receiver

Sender- Message- Medium - -Receiver- Message

Sender- - Medium - -Receiver- Message

A contract consists of two parties a buyer and a seller.

True

False

All the following are methods of discharge / termination for a contract expect.

Death

Agreement

Impossibility

One party denies to quit

The two types of contracts are simple and special ?

True

False

An offer Is a statement ct the terms of a contract.

True

False

Acceptance can only be made by the offeree, the person who has been given the offer.

True

False

This insurance policy covers accidents and other damage to a vehicle. II also covers accidents and damage caused by the driver of the vehicle.

Public Liability

Product Liability

Motor Vehicle Insurance

Premises insurance

Employer's liability is taken out by an employer 10 cover work-related accidents 10 employees.

True

False

Principles of Business Exam

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