3RD FORM BUSINESS BASICS TEST

The following are reasons to establish a business EXCEPT:

• To be one's own boss

• To share profit

• To meet consumer's needs

All of the following are functions of a business EXCEPT:

• To pay taxes

• To satisfy the needs and wants of consumers.

• To fire workers when the need arise

A ___________ making organization is a humanitarian organization that provides goods or services for the benefit of mankind.

• Money

• Non-profit

• Profit

A _______ is formed when a group of persons using their resources to provide goods or services in order to make a profit.

• Business

• Venture

• Profit

The function of the production department involves:

• Sales promotion

• Warehousing of finished goods

• Recruiting and selecting suitable workers.

What type of business ownership is depicted in the picture?

• Private limited company

• Partnership

• Sole trader

In a partnership more capital is put into the business.

• TRUE

• FALSE

A partnership and a sole trader has unlimited liability.

• TRUE

• FALSE

Shares in a private limited company can be sold to the general public.

• TRUE

• FALSE

A company is a legal entity.

• TRUE

• FALSE