BUSINESS MANAGEMENT

SHS 3

SECTION A

DURATION ; 2HRS 30MINS

Choose the most appropriate answer letter A-D

1. Which of the following agents has the authority to take legal possession of goods if his principal
fails to pay his commission?
a. Analyst b. broker c. factor d. shareholder
2. Alpha engaged Kofi as an agent for the purchase of a Volvo saloon car. Kofi in this case is acting
as
a. Del credere agent b. general agent c. special agent d. universal agent
3. Which of the following affects the purchasing power of money?
a. Cash ratio b. optimum employment c. Inflation d. savings
4. Which of the following agents has the authority to take legal possession of goods if his principal
fails to pay his commission?
a. Broker b. del credere c. estate d. factor
5. Which of the following is convenient for making payments to a number of creditors without
issuing individual cheques?
a. Standing order b. credit transfer c. direct debit d. money order
6. Which of the following is a progressive tax?
a. Poll tax b. PAYE c. excise tax d. import tax
7. Inflation is undesirable because it affects the
a. Divisibility of money b. portability of money c. stability of money d. durability of
money
8. Tax imposed locally manufactured goods is known as
a. Specific tax b. excise tax c. corporate tax d. poll tax
9. For a contract to be enforceable, there must be
a. Witness b. an offer c. genuine consent d. an acceptance
10. Commercial banks meet to settle their financial indebtedness at the
a. Money market b. clearing house c. stock market d. discount house

11. The most popular business unit in west Africa is

a. partnership b. joint stock company c. cooperative society d. sole proprietorship

12. The aim of production is to

a. satisfy human wants b. make profit c. provide human wants d. facilitate exchange

13. Radio broadcasting is an example

a. face to face communication b. visual communication c. grapevine communication d. audio

communication

14. Feedback received on the computer monitor is an example of

a. input b. hardware c. output d. byte

15. The part of management which is concerned with interpretation and implementation of organizational
policies is.

a. planning b. co-ordination c. administration d. control

16. The directing function of management includes all of the following except

a.organizing b. motivation c. leadership d. discipline

17. Who ultimately bears the cost of advertising?

a. retailer b. agent c. producer d. consumer

18. Which of the following management function ensures that actual performance conforms to set
standards?

a. controlling b. planning c. directing d. organizing

19. The capital of a co-operative society is provided by

a. suppliers b. government c. creditors d. members

20. Ordinary share are also as

a. equities b. debentures c. bonus issues d. preference shares

21. A partnership deed contain all of the following except

a. the rate of interest allowable on capital b. a statement that its liability is limited

c. names and addresses of business d. name and nature of business

22. Which of the following is a benefit of planning?

a. it eliminates uncertainty completely b. it minimizes uncertainty c. it facilitates progress

d. it improves performance

23. Which of the following is not secured against any of the company’s asset?

a. open debenture b. naked debenture c. convertible debenture d. callable debenture

24. Which of the following is a social responsibility of a business?

a. provision of safe products b. issuing of shares to the public c. annual publication of accounts

d. holding annual general meetings

25. The process of transmitting information from one source to another is

a. publicity b. notice c. advertising d. communication

26. The partner who contributes capital to the business but does not take active part in the day to day
administration of the business is called
a. active partner b. dormant partner c. nominal partner d. limited partner

27. Which of the following is the main source of capital for a public limited liability company?

a. undistributed profits b. shares c. debentures d. government grants

28. The factor of production referred to as man-made is

a. labour b. capital c. land d. Entrepreneur

29. Which of the following is a non-verbal form of communication?

a. Report b. facial expression c. Notice of meeting d. Telephone conversation

30. A person appointed to wind up the affairs of a limited company is a

a. Registrar b. Liquidator c. Banker d. Trustee

31. Which of following is a secondary stakeholder to a business?

a. customer b. employees c. government d. shareholders

32. The management process ends with

a. planning b. organizing c. directing d. controlling

33. The ownership right in a limited liability company is in the form of

a. commission b. interest c. profit d. shares

34. A debenture holder is also referred to as a

a. debtor b. do not c. borrower d. creditor

35. The responsibility of making key business decisions rest with

a. employees b. shareholders c. management d. unions

36. Decision-making at the lower levels of management is

a. operational b. strategic c.tactical d. unprogrammed

37. Effective communication is hindered by

a. planning the message b. selecting an appropriate channel c. providing feedback d. using jargons

38. A prospectus is normally issued by

a. sole trader b. partnership c. co-operative d. company

39. The concerntration of decision making at the top hierarchy of an organization is referred to as

a. specialization b. delegation c. decentration d. centralization

40. In line-and-staff organization, the line officers are the executive and the staff officers are the …
a. specialist b. employers c. controllers d. managers

41. An example of a direct service is

a. lumbering b. carpentry c. teaching d. baking

42. A set of activities used to obtain a sufficient number of the right people at the right time so as to
choose those who best meet the needs of an organization is

a. recruitment b. selection c. interview d. placement

43. The process of transmitting information from one source to another is…

a. publicity b. notice c. advertising d. communication

44. Which of the following is not an aspect of the directing function of management?

a. communicating b. leading c. supervising d. staffing

45. The channel of communication between personnel manager and finance manager in an organization is
called.

a. horizontal b. downward c. diagonal d. upward

46. Which of the following is a short term source business finance?

a. Debenture b. Overdraft c. Mortgage loans d. Ordinary shares

47. When a business participates actively in the effort to ensure cleaner environment, it is carrying out a

a. social responsibility b. government policy c. business objectives d. business commitment

48. What is first step in decision making process?

a. identifying the problem b. developing alternatives c. evaluating each alternative d. gathering

information

49. Plans which are used to solve recurrent problems in an organization are

a. standing plans b. strategic plans c. tactical plans d. contingency plans

50. A contract that depends on future performance of the parties must have

a. executed consideration b. quantum meruit c. real consideration d. executor consideration

SECTION B

Answer FOUR (4) questions from this section

Question 1

a. What is inflation?
b. State three (3) effects of on an economy.
c. Explain three (3) qualities money.
Question 2

a. What is consecsus ad idem?

b. Explain four (4) duties of an agent to his principal.

Question 3

a. What is a void contract?

b. Explain five (5) elements of a valid contract.

Question 4

a. What is non-verbal communication?

b. Explain five (5) importance of communication in business.

Question 5

a. What is a negotiable instrument?

b. State four (4) characteristics of a negotiable instrument
c. Differentiate between a crossed cheque and stale cheque.

Question 6

a. Explain the basic idea of insurance.

b. Explain the following terms in insurance
i. Insurable interest ii. Utmost good faith iii. Proximate cause iv. subrogation