PRINCIPLES OF BUSINESS

WEEK 1 QUESTIONS – CHAPER 1 (NATURE OF BUSINESS)

1. Outline 3 international means of payment.

2. Distinguish between 3 differences between private and public sectors.
3. Which business forms have the title of ‘limited liability’?
4. Outline the following concepts:
- Limited liability
- Continuity
5. Outline 3 advantages of converting from a Partnership to a Sole trader.
6. State 2 drawbacks of Nationalization.
7. Why is the Private Limited Companies under more investigations?
8. Give 3 similarities and 3 differences between the Limited Companies.
9. State some differences between a Franchisor and Franchisee.
10. Why would you choose a Franchise rather than a Sole trader?
11. Differentiate between shareholders and stakeholders.
12. Outline 2 duties of the business to the following groups:
- Government
- Society
- Shareholders
- Customers
13. Outline 2 characteristics and 2 functions of money.
14. What is double coincidence of wants?
15. Describe the following careers in business:
- Web planner
- Compliance officer
- HR personnel
16. Distinguish between an ethical and legal issue giving one example of each.
17. State 2 illegal practices and 2 unethical practices and give the consequence of each.
18. What are code of ethics?
19. Differentiate between the functional areas of a business by stating 1 activity of each.
20. Why does the Free-market economy has competition but the Command doesn’t?
21. What makes the Command economy a better one than Free-market?
22. Differentiate between the Traditional and Mixed economies.
23. Differentiate between debit and credit cards.
24. Outline the types of cheque.
25. Differentiate between a bank draft and bank overdraft.