Principles Of Business Quiz Questions

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| By Ashebagrant

Ashebagrant

Community Contributor

Quizzes Created: 1 | Total Attempts: 244

Questions: 10 | Attempts: 244 | Updated: Mar 18, 2023

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This paper is consisted of 10 questions.

Questions and Answers

1.

A contract can be define as
- A.
  
  A legally binding document between two or more persons.
- B.
  
  A word of mouth.
- C.
  
  An agreement between two or more persons.
- D.
  
  An acceptance to an offer.
Correct Answer
A. A legally binding document between two or more persons.

Explanation
The correct answer is "a legally binding document between two or more persons." This option accurately defines a contract as a formal agreement that is legally enforceable. It highlights the key characteristics of a contract, such as its binding nature and the involvement of two or more parties. This definition distinguishes a contract from a mere word of mouth agreement or an acceptance to an offer, emphasizing the importance of a written document in establishing legal obligations.

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2.

The most important role of business in any community is to:
- A.
  
  Pollute the environment.
- B.
  
  Earn foreign exchange.
- C.
  
  Provide revenue for the government
- D.
  
  Provide goods and services to satisfy the wants of people.
Correct Answer
D. Provide goods and services to satisfy the wants of people.

Explanation
The correct answer is to provide goods and services to satisfy the wants of people. This is because businesses exist to meet the needs and desires of consumers by producing and offering products or services that people want to buy. By doing so, businesses contribute to the overall well-being and satisfaction of individuals within a community. Additionally, providing goods and services also leads to economic growth and job creation, further benefiting the community as a whole.

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3.

The basic needs of man are:
- A.
  
  Land, money, car
- B.
  
  Food,money, land
- C.
  
  Food, clothing,shelter
- D.
  
  Food,shelter,money
Correct Answer
C. Food, clothing,shelter

Explanation
The basic needs of man are food, clothing, and shelter. These three essentials are fundamental for human survival and well-being. Food provides nourishment and energy for the body, clothing protects us from the elements and maintains our modesty, and shelter provides a safe and comfortable place to live. Without these basic needs, it would be difficult for individuals to thrive and lead a fulfilling life.

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4.

What is the maximum number of shareholders a private company can have
- A.
  
  Two
- B.
  
  Fifty
- C.
  
  Seventy
- D.
  
  Twenty
Correct Answer
B. Fifty

Explanation
A private company can have a maximum of fifty shareholders. This limitation is set to maintain the company's status as a private entity and prevent it from becoming publicly traded. By limiting the number of shareholders, the company can maintain control and privacy over its operations and decision-making processes. Additionally, having a smaller number of shareholders allows for easier communication and decision-making within the company.

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5.

An item displayed in a store with price tag is an example of:
- A.
  
  Offer
- B.
  
  Invitation to treat
- C.
  
  Consideration
- D.
  
  Counter offer
Correct Answer
B. Invitation to treat

Explanation
An item displayed in a store with a price tag is an example of an invitation to treat. This means that the store is inviting customers to make an offer to purchase the item at the displayed price. It is not a legally binding contract, but rather an invitation for negotiation. The store has the right to accept or reject any offers made by customers.

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6.

The market elemenst include products, price, place, advertising
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
The statement is true because the market elements mentioned, including products, price, place, and advertising, are indeed crucial components of any market. Products refer to the goods or services being offered, price is the amount customers are willing to pay, place refers to the distribution channels used to make products available to customers, and advertising is the means of promoting and communicating the products to the target audience. All these elements play a significant role in shaping the market and influencing consumer behavior.

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7.

Effective leaders are born with the necessary skills cannot be learned.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
This statement is false. Effective leaders are not necessarily born with the necessary skills, but rather, they can acquire and develop these skills through learning and experience. Leadership skills such as communication, decision-making, and problem-solving can be learned and honed over time. While some individuals may have certain natural traits that can contribute to their leadership abilities, leadership is ultimately a skill that can be cultivated and improved upon.

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8.

Another name for balance sheet is an income statement
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
The given answer is false because the balance sheet and income statement are two different financial statements used in accounting. A balance sheet provides a snapshot of a company's financial position at a specific point in time, showing its assets, liabilities, and shareholders' equity. On the other hand, an income statement summarizes a company's revenues, expenses, and net income over a specific period, typically a year. While both statements are important in evaluating a company's financial health, they serve different purposes and provide different information.

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9.

------------------- is the most common form of business organization .

Correct Answer
Proprietorship

Explanation
Proprietorship is the most common form of business organization. This is because it is the simplest and easiest type of business to set up and operate. In a proprietorship, a single individual owns and manages the business, making all the decisions and taking all the profits. It requires minimal legal formalities and allows for direct control and flexibility. Additionally, proprietorship is suitable for small-scale businesses and individuals who want to maintain full ownership and control over their business operations.

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10.

Satsisfying wants involves for types of utility: time, place,possession and____________

Correct Answer
Form

Explanation
The question is asking about the different types of utility involved in satisfying wants. The four types mentioned are time, place, possession, and form. Form refers to the physical characteristics or attributes of a product or service that contribute to its usefulness or desirability. This could include factors such as the design, shape, size, color, or appearance of the product. By considering the form of a product, individuals can choose items that align with their preferences and needs, enhancing their overall satisfaction.

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Current Version
Mar 18, 2023

Quiz Edited by
ProProfs Editorial Team
Jul 12, 2012

Quiz Created by
Ashebagrant

Principles Of Business Quiz Questions

A contract can be define as

The most important role of business in any community is to:

The basic needs of man are:

What is the maximum number of shareholders a private company can have

An item displayed in a store with price tag is an example of:

The market elemenst include products, price, place, advertising

Effective leaders are born with the necessary skills cannot be learned.

Another name for balance sheet is an income statement

------------------- is the most common form of business organization .

Satsisfying wants involves for types of utility: time, place,possession and____________