POC MODEL PAPER

Duration: 2 hours Max Marks: 75

“SECTION A”

MULITIPLE CHOICE QUESTIONS (38 MARKS)

Instructions: Attempt all of the following questions. Each question carries ONE
MARK

1. Warehouses owned and managed by custom authorities of a country are called.

(a)Bonded (b) Government (c)Public (d) Private

Warehouses Warehouses Warehouses Warehouses
2. Which of the following partner has limited liability?

(a)Active (b) Sleeping (c)Nominal (d) Secret

3. Which one of the following is a demerit of sole proprietorship business?

(a)Secrecy (b) Prompt (c)Easy formation (d) Un limited

Decision liability
4. In Pakistan, Partnership businesses are formed under the act of:

(a)1932 (b) 1942 (c) 1952 (d) 1922

5. Time utility is created by:

(a) Warehouses (b) Transport (c) Insurance (d) Information

6. Return on investment of shareholders is termed as:

(a)Fee (b) Salary (c) Dividend (d) Profit

7. Which of the following form of businesses are most difficult to form?

(a)Companies (b) Partnership (c)Sole (d) Co-operative

proprietorship Societies
8. Departmental stores fall under the category of

(a)Retailers (b) Wholesalers (c) Warehouses (d) Banks

9. Letter of credit is a request sent by importer’s bank to

(a)Government (b) Exporter (c) Central Bank (d) Importer’s

Warehouse
10. Maximum number of partners in a partnership business are:

(a)10 (b) 5 (c) 20 (d) 15

11. Which of the following documents is only concerned with a private limited
company?

(a)Prospectus (b) Statement in (c) Memorandum of (d) Articles of

lieu of prospectus Association Association
12. Document explains rules and regulations of a company is called:

(a) Prospectus (b) Memorandum (c) Articles of (d) Statement in lieu

of Association Association of Prospectus
13. Occupation which requires special knowledge and skills is termed as:

(a)Business (b) Trade (c) Industry (d) Profession

14. Which of the following is a distinct feature of wholesalers?:

(a)Work for welfare (b) Work for profit (c) Purchase in bulk (d) Have more than
quantity five employees
15. Certificate of origin is issued by:

(a)Exporter (b) Importer (c) Commercial (d) Chamber of

Bank Commerce
16. “Medical” falls under the category of :

(a)Profession (b) Occupation (c) Trade (d) Auxiliary to trade

17: A public limited company raises capital through:

(a)Borrowing by (b) Investing in (c) Offering shares (d) Asking grants

banks new business to general public from government
18. Which of the following best differentiates a Public Ware House from Retail
business?

(a)It is a welfare (b) It is an (c) It can’t be (d) It is always used

auxiliary to trade conducted at private in foreign trade.
level
19. Income of an insurance company is termed as:

(a)Dividend (b) Profit (c) Premium (d) Salary

20. Bill of lading is issued by:

(a)Exporter (b) Chamber of (c) Importer (d) Shipping

Commerce Company.
21. How many clauses does memorandum of association contain?

(a)2 (b) 5 (c) 3 (d) 1

22. In case of oral partnership agreement, what will be the base of profit and loss
sharing?

(a)Shared equally (b) Shared as per (c) Shared as per (d) Shared as per
investment ratio mutual consent of decision of most
partners senior partner of the
business.
23. Which one of the following insurance’s type is mandatory by law:

(a)Life (b) Accident (c) Transit (d) Fire

24. Businesses use to fill the gap between point of production and point of consumption
are termed as :

(a)Profession (b) Industry (c) Foreign Trade (d) Channels of

Distribution.
25. Age of a minor partner should not exceed by:

(a)17 years (b) 16 years (c) 20 years (d) 21 years.

26. Management of a public limited company is conducted by:

(a)Co-operative (b) Board of (c) General Public (d) Attorneys

Societies Directors
27. Which of the following is only related to public limited company?:

(a)Memorandum of (b) Certificate of (c) Certificate of (d) Articles of

Association Registration Commencement Association
28. Distinct feature of a super market is:

(a)Profit Making (b) Self Service (c) Free home (d) Companies’ form
delivery of business.
29. Which for of the business best caters organizational problem?

(a)Sole Proprietorship (b) Partnership (c) Companies (d) Co-operative

societies
30. What is the commonality between transport and warehouses?

(a)Both are trading (b) Both are (c) Both are specific (d) Both are specific
business auxiliary to trade to foreign trade to local trade
31. Crude oil is a product obtained by:

(a)Extractive (b) Analytical (c) Manufacturing (d) Tertiary

industries Industries industries industries
32. Business having direct link with consumers are:

(a)Wholesalers (b) Retailers (c) Distributors (d) Brokers

33. Export through aero-planes is most suitable for:

(a) Furniture and (b) General (c) Perishables (d)Heavy

Fixtures Goods goods Machineries
34. Minimum number of Active Partner(s) in a partnership:

(a)1 (b) 2 (c) 3 (d) 4

35. Which of the following is a definite cause of dissolution of partnership agreement?

(a)Competition (b) Government (c) Admission of a (d) Illness of an

Policies new partner existing partner
36. Prime objective of a business organization is:

(a)Profit making (b) Welfare of (c) Running state (d) Supporting

people matters central bank of the
country.
37. A company formed by the act of parliament of presidential order is termed as:

(a)Private limited (b) Statutory (c) Chartered (d) Public Limited

Company Company Company Company
38. Place utility is created by:

(a) Warehouses (b) Transport (c) Insurance (d) Information

 SECTION “B”

SHORT QUESTION AND ANSWERS (25 MARKS)

Instructions: Attempt any five of the following questions. Each question carries
equal marks:

Q2:

(i) Briefly discuss the scope of commerce.

(ii) Briefly explain the advantages a consumer gets from retailer?
(iii) Define memorandum of association. List its main clauses and explain Name
clause.
(iv) Explain why and when public limited companies are required to publish
prospectus?
(v) Under what circumstances a partnership agreement is dissolved.
(vi) How would you differentiate a departmental tore from super market?
(vii) Why sole proprietorship businesses are common in Pakistan?

SECTION “C”

LONG QUESTION AND ANSWERS (12 MARKS)

Instructions: Attempt any one of the following questions.

Q3: Discuss in detail the procedure of importing goods from Saudi Arabia to Pakistan.

Q4: Define partnership business. Also discuss merits and demerits of this type of
business.