Camilles Academy Inc.

Easter Term 2022

Principles of Business
Paper 1 Grade 9
Name of Student:____________________________________
1. Answer all questions
2. Circle the correct letter that represents the correct answer
3. Only one answer to be circled

1. In early economies, man engaged in direct III. service can be available anywhere and
production. Sometimes they produced more anytime with internet access
than what was needed for their IV. facilitates improved inventory management
consumption. Which statement
appropriately reflects how surplus was dealt a. all of the above
with in these economies? b. I, II and IV
c. I, III and IV
a) Through exchange of goods for money d. II, III and IV
b) Through the establishment of the barter
system 5. The mental and physical contribution of
c) Through a system of exchange people to the production process is referred to
d) Through the price mechanism as

2 Barter is a system of exchange. Which a. Land

statement does NOT reflect the barter system? b. Labour
c. Capital
a) The direct exchange of goods for goods d. Enterprise
b) A moneyless system of exchange
c) A system of indirect production
d) A system of exchange involving the
exchange of goods and services for an 6. Which of the following belong to tertiary
establish medium of exchange or currency. production?
I. baking
II. fishing
3. The barter system produced certain III. hairdressing
disadvantages. Which drawback is described in IV. banking
the case illustrated? Marcus had to find
someone who wanted his potatoes and the a. all of the above
trading party must possess the tomatoes that b. I, II and II
Marcus wanted, for the trade to take place. c. II, III and IV
d. III and IV
a) Store of value
b) Indivisibility of some goods 7. In a large firm, managers may find it difficult
c) Rate of exchange to manage. Problems in areas such as, decision
d) Double coincidence of wants making, communication and policy
implementation may be experienced. These
4. Main features of e-commerce include: issues are specifically

I. enables the use of electronic funds transfer a. Internal economies of scale

II. knowledge management b. External economies of scale
c. Internal diseconomies of scale
d. External diseconomies of scale
8.An organization structure that shows the
relationship and roles in an organization divided
according to areas such as production,
marketing, finance and personnel is a
a. Product based structure
b. Functional structure
c. Geographic structure
d. Matrix structure
9. All functional area managers are responsible
for ensuring that there is harmony among the
various departments and that there is an
understanding that all departments must work
together to achieve the organizational goals.
This is specifically the function of
a. Controlling
b. Directing
c. Organizing
d. Co-ordinating
10. Money helped to address the problems of
the barter system. Which of the following are
key
functions of money
I. Medium of exchange
II. Store of value
III. Acceptability
IV. Measure of value
12. Deciding on a performance management
system, compensation packages and
recruitment and
selection are key elements of
a. Production function
b. Marketing and sales function
c. Human resource or personnel function
d. Finance function
13. 'Duty to pay for work done' is a key function
of which stakeholder group?
a. Employees
b. Employers
c. Shareholders
d. the Society
14. The Finance department is responsible for
all of the following functions, EXCEPT
a. money management in the entire business
b. payroll system
c. making statutory deductions
d. performance management system
15. A major function of the Government in
business activities is
a. to buy goods and services
b. to set up the legal frame work for business
conduct and operations
c. to compete with businesses
d. to train business persons

a. All of the above 16. People who conceptualize and undertake

b. l, ll and lll the risk of starting a business venture are
c. ll, lll and lV specifically
d. l, ll and lV
a. Superiors
b. Subordinates
c. Managers
d. Entrepreneurs
11. An organization representing the worker’s 17. Another word for a business is __________.
interest on a collective level is a a. building
b. capital
a. Manufacturer’s Association c. enterprise
b. Trade Union d. economy
c. Credit Union
d. Co-operative
18. John wants funds to establish his business. b) Clothing
Which of the following can he obtain funds c) Shelter
(I) Personal savings d) Cell phone
(II)Borrowing from family memebers
(III) Borrowing from commercial banks
(IV) Selling his business 24. Farmers, fishermen and miners are example
of people who work in:
a. I and II only a) Primary production
b. II and III only b) Commerce
c. I,II and III only c) Tertiary production
d. I, II,III and IV d) Secondary production

19. Which are the functions of the production 25. Division of labour means that
department? (A) the same job is done by several different
persons
I Buying raw materials
(B) the same job is done by several different
II Producing goods
III Keep production records factories
(C) one job is split up into several different
a. I only processes
b. II and III only (D) labour is divided among the factors of
c. I and III only production
d. I, II and III
26. When both government and private
individuals/companies both control the means
20. The dividing of an economic activity into a of production. This is an example of:
number manageable portions and assigning a. Traditional economies
each to a specific person is known as b. Mixed economies
a. Barter c. Planned economies
b. Production
d. Free market economies
c. Subsistence
d. Specialization
27. Which of the following was used as money
by early man?
21. Which of the following is a need? (A) Coins
(B) animal teeth
a) Air Jordans (C) notes
b) Designer jeans (D) cheques
c) Food
d) New car
28. Misleading advertisements, testing products
22.Businesses can be classified as on animals, using expired food items in
business is
considered
a) Goods
a. Illegal
b) Services b. Unethical
c) Both good and services c. Practical
d) One owner d. Economical

23. Which of the following is a want? 29. A major function of the Government in
a) Food business activities is
a. to buy goods and services 35. Transforming factor inputs into finished
b. to set up the legal frame work for business good is specifically
conduct and operations a. tertiary production
c. to compete with businesses b. secondary production
d. to train business persons c. primary production
d. domestic production
30. A key feature of a subsistence economy is
a. Every community depended on the output of
the government
b. The people as well as the state owned the 36. A worker is motivated by:
factors of production A remuneration package
c. Productivity was geared towards profit b perks
maximization c work environment
d. Production was based on fulfilling basic d all of the above
needs for survival
31. E-commerce is specifically 37. All of the following are leadership styles
a. a business using electronic media to conduct except:
business a charismatic
b. the electronic process of selling goods b superficial
c. the process of buying and selling products c autocratic
using the internet d democratic
d. the process of electronic funds transfer
32. Making payments on behalf of the company, 38. All of the following are functions of
designing payroll systems and making statutory management except:
deductions are responsibilities of a delegating
a. Human resource department b coordinating
b. Marketing and sales department c managing
c. Production department d taxation of employees
d. Finance department
39. Delegation of duty means:
33. The use of graphic representation and a sharing out assignments to workers
pictures to communicate a message is b harmonising all functions
specifically c evaluating performance
a. Written communication d giving directions to workers
b. Electronic communication
c. Oral communication 40. Production has taken place when:
d. Visual communication a the right quantity and quality of goods and
services finally reach the consumer
34. A written description of the key areas of a b the manufacturer has packaged the
proposed business venture is called a or an product for sale
a. Operational plan c the good reaches the retailer
b. Production plan d the goods reaches the wholesaler
c. Financial plan
d. Business plan