BSP

MCQs
Which of the following is not a nature of
business?
1.Business is an Non-economic activity
2.It includes the activities of production or purchase and
distribution.
3.It deals in goods and services.
4.It implies regularity of transactions.
Which of the following is not a nature of
business?
1.Business is an Non-economic activity
___________________of a business refer to the objective of
earning profit and those which have a direct impact
on the profit-earning objective of business.
1.Human Objective
2.Economic Objective
3.National Objective
4.Global Objective
___________________of a business refer to the objective of
earning profit and those which have a direct impact
on the profit-earning objective of business.
1.Economic obj
the major social objective _____________

• production and supply of quality goods and services to the

society;
• Making goods available at reasonable prices;
• Contributing towards the general welfare and upliftment of
the society;
•  Ensuring fair return to the investors
• All of the Above
the major social objective _____________

• All og the above

______________of business primarily refer to the
objectives aimed at safeguarding the interest of its
employees and their welfare.
• Social objective
• Economic Objective
• Human Objective
• National objective
______________of business primarily refer to the
objectives aimed at safeguarding the interest of its
employees and their welfare.
• Human obj
• The best definition of a sole trader form of business
organization is:

• A. 
• The business only employs one person
• B. 
• The business is owned by one person
• C. 
• The firm has a single customer
• D. 
• There is a single firm in the industry.
• The best definition of a sole trader form of business
organization is:

• A. 
• The business only employs one person
• B. 
• The business is owned by one person
• C. 
• The firm has a single customer
• D. 
• There is a single firm in the industry.
• The best definition of a sole trader form of business
organization is:

• The business is owned by one person

• One of the claimed advantages of a sole trader
business is that:

• A. 
• Owners have limited liability
• B. 
• Shares can be sold to raise capital
• C. 
• Decisions and responsibilities can be shared
• D. 
• The owner has independence
• One of the claimed advantages of a sole trader
business is that:

• The owner has independence

• One of the disadvantages of a sole trader business is th
at:

• A. 
• Capital is limited to owner’s savings and bank loans
• B. 
• Decisions take too long to make
• C. 
• As they are government owned there is no profit motive
• D. 
• the owners may disagree.
• One of the disadvantages of a sole trader business is th
at:

• A. 
• Capital is limited to owner’s savings and bank loans
• One of the advantages of a partnership
form of business organisation is that:
• A. 
• All partners always have limited liability
• B. 
• Shares can be sold on the Stock Exchange
• C. 
• The business survives the death of the partners
• D. 
• The business has access to more capital than a sole trader.
• One of the advantages of a partnership
form of business organisation is that:
• The business has access to more capital than a sole trader.
• Which of the following is NOT a feature
of a private limited company?

• A. 
• Shares can be issued to raise capital.
• B. 
• Shares can be bought and sold on the Stock Exchange.
• C. 
• All owners of the business have limited liability.
• D. 
• The business continues after the death of shareholders.
• Which of the following is NOT a feature
of a private limited company?

• B. 
• Shares can be bought and sold on the Stock Exchange.
• Which of the following statements best
applies to a public limited company (PLC
)?• A. 
• It is owned by the government and is in the public sector.
• B. 
• It is owned by shareholders who can sell their shares in the Stock
Exchange.
• C. 
• It is quick and easy to set up with few legal formalities.
• D. 
• Its accounts can be kept private and it receives little coverage in the
business
• Which of the following statements best
applies to a public limited company (PLC
)?• It is owned by shareholders who can sell their shares in the Stock
Exchange.
• The main reason why the owners of
many private limited companies convert
into public limited companies is that:
• A. 
• They do not want to remain in the private sector
• B. 
• They want to gain the benefits of limited liability
• C. 
• They want to keep the annual accounts secret
• D. 
• They want to raise additional capital to expand the business.
• The main reason why the owners of
many private limited companies convert
into public limited companies is that:
• They want to raise additional capital to expand the business.
• One of the main drawbacks of many
public limited companies is that:
• A. 
• There can be a loss of control by the original owners as additional
shares are sold
• B. 
• Firms in the public sector are often less efficient
• C. 
• if the company were to fail the shareholders could lose all of their
assets
• D. 
• workers have to be asked for their opinions before major decisions are
taken.
• One of the main drawbacks of many
public limited companies is that:
• A. 
• There can be a loss of control by the original owners as additional
shares are sold
• Which of the following statements about
most public limited companies is true?
• A. 
• They are owned and controlled by the workers.
• B. 
• They are owned by the directors but controlled by the shareholders.
• C. 
• The are owned by shareholders but controlled by directors.
• D. 
• They are owned and controlled by the government.
• Which of the following statements about
most public limited companies is true?
• They are owned by shareholders but controlled by directors.
• Which of the following statements about
co-operative business organizations is
true?
• . 
• A. 
• All co-operatives are only concerned with retailing.
• B. 
• Profits are shared equally amongst members.
• C. 
• They are owned by shareholders.
• D. 
• Workers have no say in decision-making.
• Which of the following statements about
co-operative business organizations is
true?
 
• Profits are shared equally amongst members.
• one of the reasons for a business buying
a franchise is because:
• A. 
• It is always much cheaper than setting up a new business venture
• B. 
• There is complete control over important decisions
• C. 
• The business can use its own name in advertisements
• D. 
• The risks of failure are lower as it is buying a well known business
idea.
• one of the reasons for a business buying
a franchise is because:
• There is complete control over important decisions
• One of the advantages to a business of
selling a franchise is that:
• A. 
• The business can expand more quickly
• B. 
• The franchisor owns all of the shops
• C. 
• The businesses buying the franchises are certain to be successful
• D. 
• The products sold in each shop will be different.
• One of the advantages to a business of
selling a franchise is that:
• A. 
• The business can expand more quickly
• The best definition of nationalization is:

• A. 
• Expanding a business to all parts of the country
• B. 
• When the government buys all of the assets of a private sector
business
• C. 
• When a private limited company applies to become a public limited
company
• D. 
• Opening a new division of the business in another country to become a
multinational.
• The best definition of nationalization is:

• B