INSTITUTO MÉDIO MARIA MÃE DE ÁFRICA

MAPUTO CITY
Assessment type Written (comprehension, Gap filling exercises and choosing the correct words).
Performance 1.1 Candidates must be able to identify the text purpose
criteria 1.2 Candidates must be able to identify the text context
1.3 Candidates must be able to identify definitions and specific meanings in written texts.
Time duration 90 minutes
Assessment Read the text carefully
tasks: The small business
[1] Would you like to be a proprietor of a one-man business?
One-man businesses exist in many industries, but are probably most common in the retail trades.
[2] However, there those who prefer to open a whole sale business where they trade goods directly
supplied by large warehouses.
Imagine that you start a business as a shop owner. When you have decided what sort of retail shop
you want to open, you will have to find the finance that you need. A lender is unlikely to offer you
money to start the business unless you can provide some security for the loan. That is, you have
some asset that your creditor can turn into cash if your business fails and you are unable to repay
the money that you have borrowed.
[3] There is one great advantage to starting a one-man business. Relatively little capital is needed,
and this can usually be provided by one man. The amount of capital required depends on the stock
of goods, and on its rate of turnover, that is, on the rate at which it is sold and so returns the
working capital in liquid form for reinvestment. Usual sources of new capital for a one-man
business are personal savings, bank loans and overdrafts, and trade credit (i.e. an agreement to
delay payment on goods until after they have been sold again).
[4] In this business the single owner may himself provide all the labour, or else he may employ
workers, or rely on family labour- which is paid only a normal wage. When you look for premises
for your business, you should try to find a place where your customers can park their vehicles.

SECTION I –A. Now decide if the following statements are true (T) or false (F) (25%) 5.0
each
1. Whole sale is the most common business in many countries all over the world. _______
2. A lender can always lend you money even if you have no payback security. _____
3. If you want to start your own business you need a large amount of capital. _____
4. The sources of capital for a small business are limited. ___
5. A one-man business should hire the services of a business manager to make a good profit.____

B. Read the text again and answer the following questions. (25%) 5.0 each
1. Mention the two different kinds of business referred in the text.
2. What must you do if you decide to establish a retail business?
3. What’s the advantage of starting a one-man business?
4. What funding sources can a one-man business rely on?
5. Who can a one-man business proprietor employ in his business?

C. Find a word with an equivalent to these in the text. (14%) 3.5 each
1. Owner _______________
2. Shop that sells directly to the consumer ____________
3. Something valuable given as a guarantee of payment _______
4. A person or organization that lends money _______
SECTION II A. Fill in the gaps in the passage below with the words in the box. (18%) 3.0 each
decisions information which research consider variables

A marketer must plan a total strategy on (1) ________________ his marketing (2) ___________________
 are based. He needs to (3) ___________________ both internal and external (4) __________________. But
how does he gather the (5) ____________________ about them that he needs to make his decisions? The
answer typically has been to use market (6) ___________________ procedures.
B. Match the terms with the definition. (18%) 3.0 each
__1. putting goods in cardboard boxes
__2. deciding where to build
__3. storing before moving or selling
__4. not storing too many or too few goods
__5. predicting demand
__6. moving goods by truck, plane, etc

a. transportation
b. protective packing
c. inventory control
d. warehousing
e. plant and warehouse site selection
f. market forecast
Marks SECTION I- 64%
distribution SECTION 2 -36%

The lecturer: Mário Alafo

DN1
 INSTITUTO MÉDIO MARIA MÃE DE ÁFRICA
MAPUTO CITY

Answers Guide
SECTION I A. True or False (25%) 5.0 each
1. F 2.F 3.F 4. F 5. F
B. Open questions (25%) 5.0 each
1. Retail trade and whole sale business
2. Find the finance you need
3. You only need little capital
4. Personal savings, bank loans and overdraft and trade credit
5. Workers and family labour
C. Vocabulary (14%) 3.5 each
1. proprietor
2. retail shop
3. security
4. creditor/lender
SECTION II
A. GAP FILLING (18%) 3.0 each
(1) which (2) decisions (3) consider (4) variables
(5) information (6) research
B. MATCHING DEFINITIONS (18%) 3.0 each
1-b; 2-e; 3-d; 4-c; 5-f; 6-a

TEACHER: MARIO ALAFO