CyberED

4th Form
END OF TERM EXAMINATION
Principles of Business

SECTION II
There are five (5) Questions in this section. You are required to Answer any THREE (3) questions.

Question 1

John had just graduated from High School. John's father decided to retire and transfl'r the ownership
of his shoe store to him. After operating the business for only 1 year , John decided to convert the
business to a Private Limited Company.
(a) State TWO advantages John's father enjoyed as a Sole Trader. ( 2marks)

(b) Explain TWO beneftts John would enjoy by converting the business to a Private
Limited Company. ( 4 marks)

(b) State TWO disadvantages that John’s father may have experienced as a sole trader.
(2marks)
Total : (10 marks)

Question 2

(a) Outline TWO functions of an entrepreneur. ( 4marks)

(b) Explain THREE reasons why some entrepreneurs may prefer to keep their businesses small.
( 6marks)
Total: ( 10 marks)

Question 3

(a) Define EACH of the following business concepts:

(i) Profit
(2 marks)

(ii) Enterprise
(2 marks)

(iii) Specialization
(2 marks)

(b) List two stakeholders.

(2marks)

© Identify the names of TWO franchises in the Caribbean.

(2 marks)
Total: (10 marks)
Question 4
State TWO characteristics of EACH of the following forms of business organizations:
(i) Partnership (2marks)

(ii) Co-operatives
(2 marks)

(iii) Sole Proprietorship

(2marks)

Describe ONE role of EACH of the following stakeholders in business:

(i) Employers
(ii) Employees
(iii) Consumers
(iv) Owners
(4 marks)
Total: (10 marks)

Question 5
(i) Define the term ‘entrepreneur’.
(2 marks)
Advantages .............................................................................................................
.................................................................................................................................
.................................................................................................................................
.................................................................................................................................
Disadvantages ........................................................................................................
.................................................................................................................................
.................................................................................................................................
.................................................................................................................................
(4 marks)
(i) Identify FOUR characteristics of an entrepreneur.
.................................................................................................................................
.................................................................................................................................
.................................................................................................................................
.................................................................................................................................
.................................................................................................................................
.................................................................................................................................
.................................................................................................................................
.................................................................................................................................
(4 marks)
Total: (10 marks)

Good luck !
Section I

You are required to Answer ALL questions in this section.

1. When two persons want what each other has to offer it is termed as ?
(a) Barter
(b) Trade
(c) Double coincidence of wants
(d) Business activity
2. The exchange of goods and services without the use of money is called
(a) Tele banking
(b) Consuming
(c) Barter
(d) Means of exchange
3. Any person who has interest in the business is called a/an
(a) Stake holder
(b) Shareholder
(c) Investor
(d) Customer
4. A person who owns shares in a business is called
(a) Stakeholder
(b) Shareholder
(c) Investor
(d) Consumer
5. A person that purchases goods and services is called
(a) Stakeholder
(b) Shareholder
(c) Investor
(d) Consumer
6. A person/ company that provides a business with its raw materials is called
(a) Producer
(b) Supplier
(c) Consumer
(d) Provider
7. A person / business that produces goods / services is said to be the
(a) Producer
(b) Supplier
(c) Consumer
(d) Provider
8. Which is not an advantage of barter ?
(a) Increases availability of goods
(b) No money is involved
(c) Enables the disposal of surplus production
(d) Goods are always divided evenly
9. Anything that serves as a generally acceptable means of exchange is called
(a) Payment
(b) Money
(c) Money order
(d) Cheque
10. There are _____ MAIN sectors of the economy
(a) 4
 (b) 6
(c) 2
(d) 5
11. An enterprise/ organization with more than one owner is called a
(a) Private sector business
(b) Partnership
(c) Shareholder business
(d) Public sector business
12. A sold trader has
(a) Limited liability
(b) Unlimited liability
13. Any company in the private sector business wants to
(a) Cater to the entire population
(b) Provide merit goods
(c) Earn a profit
(d) Give free goods
14. Merit goods are
(a) Limited goods
(b) Fixed goods
(c) Free goods
(d) Fragile goods
15. The public sector caters for
(a) Specific communities
(b) Businesses
(c) The entire population
(d) The market
16. A _______ business is easy to set up.
(a) Partnership
(b) Public
(c) Sole trader
(d) Stakeholder
17. Which is NOT an internal stakeholder
(a) Owners
(b) Suppliers
(c) Employees
(d) Managers
18. Which is not an external stakeholder
(a) Government
(b) Bank
(c) Suppliers
(d) Supervisors
19. Which of the following is not a function of money ?
(a) Indivisibility
(b) Store of value
(c) Measure of value
(d) Medium of exchange

True or False
20. The Government is an Internal Stake Holder.
(a) True
(b) False
 21. Suppliers are not stakeholders.
(a) True
(b) False
22. Employees are internal Stakeholders.
(a) True
(b) False
23. The community is not considered as a Stakeholder.
(a) True
(b) False
24. Employers are not Stakeholders.
(a) True
(b) False
25. Suppliers are not Shareholders.
(a) True
(b) False
26. Only what has been invested can be used to payed back debts once the business has
Unlimited Liabilities.
(a) True
(b) False
27. Personal possessions aren’t used to pay back debts once the company has limited liability.
(a) True
(b) False
28. Barter is not possible if there is no double coincidence of wants.
(a) True
(b) False
29. ATM stands for Automated technological Machine.
(a) True
(b) False
30. A partnership is a business with only 2 owners.
(a) True
(b) False

Good luck  !