Subjective Questions:

1) Define the type of organization- partnership . (2)

2) Explain two functions of a central bank. (4)
3) Explain what are cooperative worker and cooperative customer with example for each. (6)
4) Discuss whether or not public corporation by government would benefit the country? Also use
examples. (8)

Objective Questions:
1. What is the main aim of a commercial bank? (1)

A) To act as banker to the government B) To issue bank notes

C) To make a profit D) To manage the national debt

2. What would make an item unsuitable to act as money? (1)

A) It is easy to carry B) It is generally acceptable

C) It is perishable D) It is recognizable

3. Public limited companies include— (1)

A) Listed companies B) Non listed companies

C) Both listed and non listed companies D) Government non listed companies

4. What type of organization has limited liability? (1)

A) Soletrader B) Partnership

C) Limited company D) Coperative workers

5. The three main functions of commercial banks are – to accept deposits, borrow and to enable their
customers to make interest payments. (1)

A) True B) False C) Not Given

6. Which of the following is NOT a feature of a private limited company? (1)

A) Shares can be issued to raise capital.

B) Shares can be bought and sold on the Stock Exchange.

C) All owners of the business have limited liability.

D) The business continues after the death of shareholders.

7. Which of the following statements about co-operative business organizations is true? (1)

A) All co-operatives are only concerned with retailing.

B) Profits are shared equally amongst members.

C) They are owned by shareholders.

D)Workers have no say in decision-making.

8. Which of the following statements best applies to a public limited company (PLC)? (1)

A) It is owned by the government and is in the public sector.

B) It is owned by shareholders who can sell their shares on the Stock Exchange.

C) It is quick and easy to set up with few legal formalities.

D) Its accounts can be kept private, and it receives little coverage in the business.

9. One of the forms of business organization owned by a manager is __________ . (1)

A) Cooperative B) Corporation

C) Partnership D) Sole Proprietorship

10. Money enables people to save. Which function of money does this describe? (1)

A) Medium of exchange B) Store of value

C) Unit of account D) Standard for deferred payments