Business Management

Question 1

1Buying goods from suppliers and paying later is

Easy

A. trade credit B. equity finance C. factoring D. leasing

Question 2

2Technological change affects business by

Easy

A. stopping all trade B. removing competition C. reducing knowledge D. creating new products and methods

Question 3

3Equity finance comes from

Hard

A. trade credit B. bank loans C. overdrafts D. selling shares

Question 4

4Which is a source of start-up finance for a small business?

Easy

A. wages paid B. tax refunds to customers C. personal savings D. dividends paid to others

Question 5

5A disadvantage of a sole proprietorship is

Easy

A. quick decisions B. personal contact with customers C. unlimited liability D. keeping all profits

Question 6

6Public procurement in Ghana is regulated by the

Easy

A. Public Procurement Authority B. Ghana Revenue Authority C. Electoral Commission D. Ghana Ports and Harbours Authority

Question 7

7Net present value (NPV) of a project is positive when

Hard

A. profit is zero B. costs exceed revenue C. payback is long D. discounted cash inflows exceed the investment

Question 8

8A contract with a minor for non-necessaries is generally

Medium

A. fully valid B. illegal C. criminal D. voidable

Question 9

9The payback period of a GH¢60,000 investment returning GH¢15,000 a year is

Hard

A. 2 years B. 6 years C. 15 years D. 4 years

Question 10

10The document that governs the internal running of a company is the

Medium

A. articles of association B. memorandum of association C. balance sheet D. certificate of incorporation

Question 11

11A public limited company raises capital by

Hard

A. selling shares to the general public B. borrowing from members only C. partners' contributions only D. government grants only

Question 12

12Which is an advantage of a sole proprietorship?

Easy

A. limited liability B. the owner keeps all the profit C. continuity after death D. unlimited capital

Question 13

13A major disadvantage of a sole proprietorship is

Easy

A. keeping all profits B. personal contact with customers C. unlimited liability D. quick decision-making

Question 14

14Start-up capital is

Easy

A. tax paid B. a bank fee C. money needed to begin a business D. profit after one year

Question 15

15Barriers to communication include

Easy

A. clear language B. noise and jargon C. listening D. feedback

Question 16

16An invitation to treat, such as goods displayed in a shop window, is

Medium

A. not an offer B. a contract C. a binding offer D. an acceptance

Question 17

17Comparing actual performance with planned targets and correcting deviations is

Easy

A. controlling B. planning C. directing D. motivating

Question 18

18Analysing the political, economic, social, technological, legal and environmental factors affecting a business is

Easy

A. SWOT analysis only B. ratio analysis C. PESTLE analysis D. break-even analysis

Question 19

19Damages are

Easy

A. a type of offer B. a criminal penalty C. money awarded to compensate for a breach D. a tax

Question 20

20Training done while working at the workplace is

Easy

A. on-the-job training B. off-the-job training C. induction only D. appraisal