LYCEUM INTERNATIONAL SCHOOL

First Semester Examination – March 2017

Subject : Business Studies
Class : 7 ..........
Duration : 2 periods Date : ........................................
Candidate's name : ........................................................... Admission no : ..........................
PART – I

1. Underline the correct answer.

(i) Which is a technique that is used to communicate product value to the customer ?
(a) Delivery vehicle. (b) Promotion.
(c) Place. (d) Product.

(ii) The owner of a limited liability company is called a

(a) stakeholder. (b) supplier.
(c) shareholder. (d) government.

(iii) Asking some employees to leave the organization due to their work being unsatisfactory
is known as
(a) redundancy. (b) recruitment.
(c) dismissal. (d) safety.

(iv) Which is an example for barriers to communication ?

(a) Noise (b) Message
(c) Discussion (d) Channel

(v) The payment made to a shareholder is called

(a) profit. (b) commission.
(c) salary. (d) dividend.
[Total = 2 × 5 = 10 marks]

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Grade 7 Business Studies contd.....from page 1
2. Mark True (T) or False (F).

(i) The 'Ceylon Shipping Corporation Limited' has been registered in the stock market.
(----------)

(ii) Sole trader organizations enjoy a separate legal entity. (----------)

(iii) Marketing is the process of identifying customer needs and wants and satisfying them in
a profitable way. (----------)

(iv) Both the sender and the receiver have to be familiar with the chosen communication
channel. (----------)

(v) Focusing on what the customer wants is called market oriented business. (----------)
[Total = 2 × 5 = 10 marks]

3. Match the words/phrases in column A with those in column B and write the correct
letter in the grid provided below.

Column A Column B

(i) A business which is focused on product itself. (a) Price

(ii) Can issue shares to the public. (b) Ceylon Water Board

(iii) The value placed by the customer on the product. (c) Long chain of command

(iv) Barriers to communication. (d) Product oriented business

(v) Public sector organization. (e) Public Limited Companies

A (i) (ii) (iii) (iv) (v)

B

[Total = 2 × 5 = 10 marks]

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Grade 7 Business Studies contd.....from page 2
4. Fill in the blanks with the following words.

( an esteem need , marketing mix ,a message , market research , market )

(i) A place where products are bought and sold is called the -----------------------------.

(ii) Promotion can be identified as an element of the -----------------------------.

(iii) ----------------------------- can be defined as the instructions passed by the sender to the
receiver.

(iv) ----------------------------- can be explained as the need to feel that the job done is
important and that the person performing it is important.

(v) ----------------------------- can be used to find the preferences of customers in the target
market.
[Total = 2 × 5 = 10 marks]
PART – II
• Write bried answers.

1. (i) Trade can be classified as domestic trade and international trade. Define them with
examples.
(a) Domestic trade
--------------------------------------------------------------------------------------------------
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(b) International trade
--------------------------------------------------------------------------------------------------
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(4 marks)
(ii) What are unlimited liability companies ? Name two types.
(a) ------------------------------------------------------
(b) ------------------------------------------------------
(2 marks)
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Grade 7 Business Studies contd.....from page 3
(iii) Even though sole trader business organizations can be started and continued easily, they
have to face a major drawback called “unlimited liability”. Explain.
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
(2 marks)

(iv) What are the common features of limited liability companies ?

(a) --------------------------------------------------------------------------------------------------
(b) --------------------------------------------------------------------------------------------------
(c) --------------------------------------------------------------------------------------------------
(6 marks)

(v) Explain the following terms.

(a) Scarcity of resources :

--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------

(b) Specialisation :
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------

(c) Opportunity cost :

--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
(6 marks)
[Total = 20 marks]

2. Imagine that you are a newly–passed out graduate from a state university. You want to start a
new business.

(i) Name a suitable product (good or service) which has greater demand in the current
market.
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(2 marks)

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Grade 7 Business Studies contd.....from page 4
(ii) Identify the human need that you could fulfil through your product.
---------------------------------------------------------------------------------------------------------
(2 marks)

(iii) What are the factors of production needed to start providing the above mentioned
product ?
(a) -------------------------------------- (b) --------------------------------------
(c) -------------------------------------- (d) --------------------------------------
(4 marks)

(iv) What are the benefits of being a sole trader ?

(a) --------------------------------------------------------------------------------------------------
(b) --------------------------------------------------------------------------------------------------
(4 marks)

(v) What are the drawbacks (obstacles) that you would have to face as a sole trader ?
(a) --------------------------------------------------------------------------------------------------
(b) --------------------------------------------------------------------------------------------------
(4 marks)

(vi) Assume that your vision is to be a marketing leader of your chosen industry. For that
reason, an excellent, talented and skilful workforce is needed.

(a) Write the functions of a Human Resource Department.

(I) -------------------------------------- (II) --------------------------------------
(III) -------------------------------------- (IV) --------------------------------------
(V) -------------------------------------- (VI) --------------------------------------
(6 marks)

(b) What are the advantages of a dedicated workforce ?

(I) -------------------------------------------------------------------------------------------
(II) -------------------------------------------------------------------------------------------
(4 marks)

contd.....to page 6
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Grade 7 Business Studies contd.....from page 5
(vii) “Communication is vital to continue and develop a particular organization”.

(a) Define the term “communication” .

--------------------------------------------------------------------------------------------------
(2 marks)

(b) Explain the above statement.

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--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
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(4 marks)

(viii) Identify the marketing mix of your product and explain it.

(a) Product
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------

(b) Price
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------

(c) Place
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------

(d) Promotion
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
(8 marks)
[Total = 40 marks]

END
Ref : CH