Principles Of Business Knowledge Quiz

1.

When Trinidad exchanges its oil for cement from Jamaica, the form of trade is best described as:
- A.
  
  Barter
- B.
  
  Regional trade
- C.
  
  Counter trade
- D.
  
  International trade
Correct Answer
A. Barter

Explanation
The form of trade between Trinidad and Jamaica, where oil is exchanged for cement, is best described as barter. In a barter trade, goods or services are exchanged directly without the use of money. In this case, Trinidad and Jamaica are trading their respective resources without involving any monetary transactions.

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2.

Which of the following statements about the planned economy is INCORRECT?
- A.
  
  Consumers have a choice in the market place.
- B.
  
  Wages can be negotiated between workers and employers.
- C.
  
  The government owns and operates the major national operations.
- D.
  
  The means of production are owned by the government.
Correct Answer
A. Consumers have a choice in the market place.

Explanation
The statement that is INCORRECT about the planned economy is:
Consumers have a choice in the market place.
In a planned economy, the government makes decisions about what goods and services will be produced, how much will be produced, and at what prices they will be sold. This means that consumers typically have limited choices in the marketplace compared to a market-driven economy. They may have to accept whatever goods and services are available, regardless of their individual preferences.
While the other statements may be present to varying degrees in different planned economies:
Wages can be negotiated between workers and employers: This might be partially true in some planned economies with some level of decentralization, but generally, wages are also set by the government based on central planning.
The government owns and operates the major national operations: This is a defining characteristic of planned economies, where the government controls key industries and resources.
The means of production are owned by the government: This is also a central feature of planned economies, as the government aims to control the production process to achieve its economic goals.
Therefore, the statement about consumer choice being readily available in a planned economy is the most inaccurate of the options presented.

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3.

In a free enterprise system, all of the following conditions exist EXCEPT:
- A.
  
  Decisions about prices are made in the market place.
- B.
  
  There is greater ownership of the factors of production by the government than by the private sector.
- C.
  
  Consumers are free to make their choices in the market place.
- D.
  
  Private sector members are encouraged to remain in business because of the opportunity to make a profit.
Correct Answer
C. Consumers are free to make their choices in the market place.

Explanation
In a free enterprise system, consumers are indeed free to make their choices in the market place. This is one of the fundamental principles of a free market system, where individuals have the freedom to decide what goods or services to buy based on their own preferences and needs. In such a system, businesses compete to attract consumers by offering products that meet their demands and desires. Therefore, the given answer is incorrect as it contradicts the basic principles of a free enterprise system.

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4.

In a mixed economy, for which of the following enterprises do governments take responsibility?
- A.
  
  Manufacturing
- B.
  
  Utilities
- C.
  
  Commercial banking
- D.
  
  Construction
Correct Answer
B. Utilities

Explanation
In a mixed economy, governments typically take responsibility for utilities. This is because utilities, such as electricity, water, and gas, are considered essential services that need to be provided to the public. Governments often regulate and oversee the operations of utility companies to ensure that they are accessible, affordable, and meet certain standards. This involvement is necessary to protect the interests of the public and ensure that these vital services are available to all citizens.

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5.

The private sector is composed of the following sections: i). household ii). business iii). government iv). the market place
- A.
  
  I and ii
- B.
  
  i, ii and iv
- C.
  
  i and iii
- D.
  
  Ii, iii and iv
Correct Answer
B. i, ii and iv

Explanation
The correct answer is i, ii and iv. The private sector is composed of households, businesses, and the marketplace. Households refer to individual consumers who purchase goods and services. Businesses are organizations that produce and sell goods and services. The marketplace is where these transactions take place, where buyers and sellers interact. Therefore, the private sector includes households, businesses, and the marketplace.

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6.

A group of professional engineers wishing to enter into a business enterprise would most likely operate:
- A.
  
  A co-operative
- B.
  
  A partnership
- C.
  
  A joint-stock company
- D.
  
  A proprietorship
Correct Answer
B. A partnership

Explanation
A group of professional engineers wishing to enter into a business enterprise would most likely operate as a partnership. This is because a partnership allows multiple individuals to combine their skills, resources, and expertise to run a business together. In a partnership, the partners share the profits, losses, and decision-making responsibilities. This structure would be suitable for professional engineers as they can pool their technical knowledge and experience to effectively manage and operate the business. Additionally, a partnership offers flexibility and ease of formation compared to other business structures such as a joint-stock company or proprietorship.

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7.

In which type of system does the state ownership and control all of the country's productive resources?
- A.
  
  Capitalist system
- B.
  
  Mixed system
- C.
  
  Planned system
- D.
  
  Socialist system
Correct Answer
C. Planned system

Explanation
In a planned system, the state has complete ownership and control over all of the country's productive resources. This means that the government determines what goods and services are produced, how they are produced, and how they are distributed. The state also sets the prices for these goods and services. This type of system is often associated with socialist or communist economies, where the goal is to achieve economic equality and eliminate private ownership of resources.

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8.

Which of the following business organizations belong to the public sector? i). Nationalized industries ii). Partnerships iii). Public corporations iv). Sole traders
- A.
  
  I and iii only
- B.
  
  Ii an iv only
- C.
  
  i, ii and iii only
- D.
  
  Ii, iii and iv only
Correct Answer
B. Ii an iv only

Explanation
The correct answer is ii and iv only. This means that partnerships and sole traders belong to the public sector.

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9.

In a partnership, the sleeping partner is one who:
- A.
  
  Contributes not less than three-quarters of the share capital of the business
- B.
  
  Sleeps on the premises as a watchman and is paid a salary
- C.
  
  Takes no active part in the affairs of the business but shares in its profits
- D.
  
  Undertakes the task of implementing the policy decisions of the partnership
Correct Answer
C. Takes no active part in the affairs of the business but shares in its profits

Explanation
A sleeping partner in a partnership is someone who does not actively participate in the day-to-day operations or decision-making of the business but still receives a share of the profits. This means that while they may have invested capital into the business, they do not contribute to the management or running of the company. Instead, they rely on the efforts of the active partners to generate profits and receive a portion of those profits based on their ownership stake in the partnership.

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10.

Which ONE of the following is NOT a function of a trade union?
- A.
  
  Assisting in the settlement of industrial disputes
- B.
  
  Bargaining for the rights and privileges of employers
- C.
  
  Bargaining for improvements in workers' wages and working conditions
- D.
  
  Seeking educational, social, and legal benefits for its members
Correct Answer
D. Seeking educational, social, and legal benefits for its members

Explanation
A trade union is an organization that represents and advocates for the rights and interests of workers. Its main functions include assisting in the settlement of industrial disputes, bargaining for the rights and privileges of employers, and bargaining for improvements in workers' wages and working conditions. However, seeking educational, social, and legal benefits for its members is not a function of a trade union. Trade unions primarily focus on labor-related issues and ensuring fair treatment and better working conditions for their members rather than seeking educational, social, and legal benefits.

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Principles Of Business Knowledge Quiz

When Trinidad exchanges its oil for cement from Jamaica, the form of trade is best described as:

Which of the following statements about the planned economy is INCORRECT?

In a free enterprise system, all of the following conditions exist EXCEPT:

In a mixed economy, for which of the following enterprises do governments take responsibility?

The private sector is composed of the following sections: i). household ii). business iii). government iv). the market place

A group of professional engineers wishing to enter into a business enterprise would most likely operate:

In which type of system does the state ownership and control all of the country's productive resources?

Which of the following business organizations belong to the public sector? i). Nationalized industries ii). Partnerships iii). Public corporations iv). Sole traders

In a partnership, the sleeping partner is one who:

Which ONE of the following is NOT a function of a trade union?