“AN HONEST STUDENT IS THE NOBLEST WORK OF THE LORD”

ST. THOMAS’ CATHOLIC INTERNATIONAL COLLEGE

SEEDUWA
1ST TERM EVALUATION 2022/2023
CANDIDATE NAME:

GRADE / CLASS FORM II CANDIDATE NO.

COMMERCE DECEMBER 2022

2 HOURS

Part A

01) Underline the most suitable answer.

1. What is the first and most important objective of a private business organization?
a. Profit Maximization
b. Growth
c. Survival
d. Social Responsibility

2. The liability of a sole proprietor is,

a. Limited to the extent of his capital invested in the business
b. Limited to the extent of the value of business assets
c. Limited to the extent of the value of business assets and his all private assets
d. Limited value of the business assets

3. A company is known to not have a legal personality because its name,

a. does not have the shape of a natural person
b. cannot be used in the court of law or in legal activities
c. is invisible and intangible
d. exists only in contemplation of law

4. A corporative societies' membership is,

a. Open and compulsory
b. Open and voluntary
c. not essential
d. not compulsory

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5. Oil refinery and sugar mill are classified under which industries?
a. Primary
b. Secondary
c. Tertiary
d. None of the above

6. In which industry, the support service activities are categorized?

a. Commercial industries
b. Primary industries
c. Secondary industries
d. Tertiary industries

7. Iron ore, forest, water etc. are the example of which factors of production?
a. Labour
b. Land
c. Capital
d. Natural resource

8. Which of the following is not one of the three forms of business organization?
a. Corporations
b. Partnerships
c. Proprietorships
d. Counter ships

9. What is a distribution channel?

a. a shop or other retail outlet
b. a product’s route through the supply chain
c. an electronic network
d. a means of transporting goods (e.g. lorry or train)

10. According to retailers, what are three secrets to their business success?
a. product, price and place
b. location, Promotion and Place
c. service, smile and sizzle
d. people, process and physical evidence

11. The process of imparting or increasing knowledge or skill of an employee to do a particular job.
a. Training
b. Development
c. Motivation
d. Leadership

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12. The systematic, periodic and impartial rating of an employee excellence in matters pertaining to his
present job and his potential for a better job.
a. Compensation and motivation
b. Training and Development
c. Performance appraisal
d. Performance evaluation

13. Which statement is false regarding leadership?

a. Leadership does not necessarily take place within a hierarchical structure of an organization
b. When people operate as leaders their role and position is always clearly established and defined
c. Not every leader is a manager
d. All of the above

14. Changes made in product characteristics such as quality, style, and features are called
a. modifying the raw material schedule
b. modifying marketing mix
c. modifying the product
d. modifying the market

15. Advertising and personal selling can be referred to as_______ In marketing strategy.
a. Product
b. Place
c. Price
d. Promotion

16. HRM does not include _______?

a. Retirement of employees
b. Training of employees
c. Manpower planning
d. Maintenance of accounts

17. Which of the following is true about managers within an organization?

a. Management skills apply to managers at top levels in an organization
b. Management skills apply to managers at all levels in an organization
c. Management skills apply to managers at middle levels in an organization
d. Management skills apply to managers at executive levels in an organization

18. The process of monitoring, comparing and correcting is called,

a. Leading
b. Directing
c. Coordinating
d. Controlling

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19. Management objectives includes the process of defining specific objectives,
a. Within the customers
b. Within a department
c. Within an organization
d. All of the above

20. The HRM function which includes the mediation of disputes between employees and between
employees and employer is,
a. Recruitment and selection
b. Employee and labour relations
c. Compensation
d. Training and development

(…………../20 Marks)

02) Mention 'True' or ‘False’

1. Service providing businesses produce different tangible products according to

customer taste and preferences. – ………………

2. Businesses can be divided according to who performs the management activities. – ………………

3. Co-operative societies are a types of business controlled under the state government. – ………………

4. Educational publications department in Sri Lanka is fully owned by the government. – ………………

5. Directors of the state corporations are independent to make decisions regarding the
business. – ……………..

6. A manager can always be a leader but a leader is not always a manager. – ………………

7. Planning involves the skills of influencing people for a particular purpose ir goal. – ………………

8. A democratic leader allows the employees to take all decisions by themselves with low
or minimum intervention. – ………………

9. Marketing is a single transaction between a firm and a customer, nothing more. – ………………

10. Because they don't try to earn a profit, the marketing concept is not very useful for
nonprofit organizations. – ………………

(…………../10 Marks)

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 Part B

1) A. Vinodh is a student pursuing final year M.Sc. In Network engineering from the IABT university. His father
Mr. Sarodh Silva who owned a small retail store in their village suffered a heart attack and became
completely paralyzed. Since there was no other means of income to the family Vinodh decided to leave his
studies and take up his father’s retail shop. While checking the books of accounts in the store Vinodh
found out that his father has taken a loan of £5000 from the City Bank which has to be repaid within the
year, but the business has been running in loss due to the father's bad health condition. Hence, his mother
advised him to close the shop and look for a job somewhere else.

a. What is the form if business organization formed by Mr. Sarodh Silva? (2)

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b. Name a merit and demerit if this type of business organization. (2)

Merit –
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Demerit –
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c. ' loan of £5000 from the City Bank which has to be repaid within the year, but the business has been
running in loss…' identify the nature of liability of the owner stated in this line. (2)
…………………………………………………………………………………………………………………………………………………………………..

d. If Vinodh decides to include one of his friends in the business who is well qualified in business
management to which form of business organization will this business change into? (2)
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e. Name 2 demerits if the new form of business which cannot be seen in the earlier form. (2)

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f. What is the ordinance affecting this new form of business in Sri Lanka? (2)
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B. There is an organization comprising of 10 members. It has a separate legal personality and continuing
existence. These members have come together to conduct this business in order to provide some common
needs of a group of people.

a. Which form of a business organization is this? (1)

…………………………………………………………………………………………………………………………………………………………………..

b. Name 2 merits of this business. (2)

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 …………………………………………………………………………………………………………………………………………………………………..

c. Name the act under which such organizations are registered in Sri Lanka. (2)
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d. Give 1 example in Sri Lanka for this organization type. (2)

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e. Mention true or false. (1)

i. Membership in this organization is not voluntary and open. – ………………………

(…………../20 Marks)

2) Sam is an energetic and motivated person who is working in the Human Resource department of Ecuity
Private Limited Company as the HR Manager since two years. The HR department of this company has not
been functioning properly before Sam’s posting to the job. He has noticed that some of the older
employees in the Finance department lack up-to-date knowledge on the new software and excel sheets
used in accounting. Sam plans to come up with some solutions to overcome this issue together with the
ideas and contributions of his subordinates in the HR department.
a. Explain briefly the role of Sam as a HR manager. (2)

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b. Which function of HRM should be applied by Sam to overcome the problem of lack of knowledge by the
older employees in Finance department? (2)

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c. Name 2 other functions of HRM. Explain briefly. (4)

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d. Identity the type of leadership displayed by Sam. (2)

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e. Give2 merits if Sam’s leadership style. (2)

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f. Name the 2 other types of leadership styles. Explain them briefly. (4)

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g. Name the 4 management processes Sam has to go through in order to overcome this problem. (4)

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(…………../20 Marks)

3) 'Marketing is the process by which companies create value for customers and build strong customer
relationships in order to capture value from customers in return.'
-Phillip Kotler/Gary Armstrong-
a. Identify 2 key functions or activities of marketing. (2)
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b. What is 'Relationship marketing’? (2)

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c. A company always aims at its target market in marketing. Define the term 'target market'. (2)
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d. In performing the key tasks or marketing the marketing managers have a number of tools that can be
used to develop marketing programs. Name these 4 marketing tools and explain two of them briefly. (6)

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e. Name 2 other extended marketing tools. (2)

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f. Define the following terms with examples. (4)
a. Consumer market –
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b. Industrial market –
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g. Google introduces their Google glasses and sold this product for a very high price, yet the customers
were willing to pay and purchase this product due to the latest technology used by Google. Identify the
pricing method used by Google. Explain briefly. (2)
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(…………../20 Marks)

4) Mid-term evaluation (…………../10 Marks)

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