ENT102 EXAM PRACTICE QUESTIONS AND ANSWERS

_____ is a limited partnership?

a.A partnership where all members take active part in the management of the business and are generally liable to any loss or risk

b.A partnership where all members take active part in the management of the business and are not generally liable to any loss or risk

c.A partnership where any members in this category, his debts are restricted to the amount of money contributed in running the business.

d.A partnership where all members do not take active part in the management of the business and are generally not liable to any loss or risk

Which of the following is not a source of finance for a sole trader?

a.Issuing shares

b.Borrowing from banks

c.Credit purchase from manufacturers or wholesalers

d.Personal savings

What is the role of distributors in enhancing business performance?

a.They regulate the organization\’s activities

b.They provide resources and materials needed for production

c.They own the business

d.They sell the organization\’s goods and services to customers

How do customers affect a business?

a.They provide resources and materials needed for production

b.They regulate the organization\’s activities

c.They purchase the organization\’s goods and services

d.They compete with the organization for resources and markets

According to Hornby (2006), who is an entrepreneur?

a.A person who works as an employee

b.A person who has no financial risk

c.A person who starts a business

d.A person who manages a house

Who are the owners of a business?

a.Employees

b.Customers

c.Those who have legal property rights to the business.

d.The board of directors

What is the name of the people that, once in power, tend to act so as to limit the degree of participation by others in the political process?

a.Autocrats

b.Anarchists

c.Authoritarians

d.Bureaucrats

What is the impact of competitive rivalry on a business?

a.It eliminates competition and ensures market dominance

b.It reduces the demand for the organization\’s goods and services

c.It encourages innovation and growth

d.It provides a stable and predictable environment

What is the business environment?

a.A set of forces and conditions outside the organization\’s boundaries

b.A single factor that affects the way the organization operates

c.A set of forces and conditions within the organization\’s boundaries

d.The physical work environment of the organization

Who is an entrepreneur according to UNDP (2010)?

a.A person who starts a business or makes money by starting or running businesses

b.A person who manages a project and delivers valuable benefits.

c.A person who is risk-averse and operates in a dissonance with general practice and belief.

d.A person who does not brings something unique, which represents value in the eyes of the buyer or consumer

What is the organizational structure?

a.The managers and employees

b.The owners and board of directors

c.The set of forces and conditions within the organization\’s boundaries

d.The various departments and physical work environment.

Which of the following are key characteristics of an entrepreneur?

a.Dependent, creator of obstacles, and risk-averse

b.Dependent, value-creating, and risk-averse

c.Independent, obstacle-seeking, and risk-averse

d.Independent, value-creating, and risk-taking

Who are the employees of an organization?

a.Workers who perform the day-to-day operations

b.The board of directors

c.Suppliers

d.Owners

What is the primary barrier to economic growth in developing countries, according to UNDP?

a.Scarcity of land

b.Scarcity of capital

c.Scarcity of labor

d.Scarcity of entrepreneurs

Who are the top managers in an organization?

a.The middle managers

b.A small group of executives who manage the overall organization

c.The employees

d.The first-line managers

What is the liability of a sole trader?

a.Insured

b.Limited

c.Unlimited

d.Shared with partners

Which of the following is not a feature of a sole trader?

a.Multiple owners

b.Liability

c.Sources of capital or finance

d.Ownership

What is the method of raising capital for a sole trader?

a.Personal savings and borrowing from friends and relatives

b.Public offering of shares

c.Government grants

d.Borrowing from banks

What is the role of the board of directors in a corporation?

a.To actively manage the company

b.To coordinate the activities of lower-level managers

c.To own the business

d.To perform a general oversight function

How do suppliers affect a business?

a.They purchase the organization\’s goods and services

b.They provide resources and materials needed for production

c.They regulate the organization\’s activities

d.They compete with the organization for resources and markets

What is the role of financial institutions in business development?

a.To provide resources and services to businesses

b.To allocate resources in exchange for personal favors

c.To set output targets and direct resources

d.To coordinate production and ensure consistency between output and input demands

What is the broad term used to describe the innovation of modern industrial business leaders, according to Akanni?

a.Entrepreneurship

b.Corporate venturing

c.Business

d.Intra-preneurship

In the context of meeting societal needs and wants, what is the primary assumption underlying the idea of economic scarcity?

a.Both collective and individual needs and wants consistently outstrip the means available to satisfy them

b.Resources are unlimited

c.Economic systems do not have to solve the problems posed by economic scarcity

d.Governments can provide instant health care and other services at a time and place and of a quality convenient to the user

What is the economist\’s idea of \’scarcity\’ based on?

a.The limited needs and wants of society

b.The limited resources available to a society

c.The abundance of resources in a society

d.The unlimited needs and wants of society

What is the role of the state in a centrally planned economy?

a.To own and/or control the main economic resources, and establish priorities in their use

b.To coordinate production and ensure consistency between output and input demands

c.To set output targets and direct resources

d.To provide resources and services to businesses

In a centrally planned economy, the state often:

a.Encourages free-market competition among businesses

b.Relies on international trade to balance its economy

c.Directs resources to achieve predetermined output targets

d.Allows prices to form the integrating mechanism