ASSESSMENT GRADE 9………………………..

NAME …………………………………………………………………………………………………
ASSESSMENT GRADE 9 – TOTAL 20 MARKS

1. Multiple Choice (5 Marks)

Choose the correct answer for each of the questions below and write it in the space provided.
1. Shareholders in a company are the ……………………… of the business organisation.
A customers B owners
C leaders D suppliers

2. Documents required to register a company at the Registrar of Companies are

A Partnership Deed and Article of Association B Share certificate and Article of Association
C Memorandum of Association and Article of Association D. Memorandum of Association and Partnership Deed

3. A ……………………………….. issues share to members of the general public.

A cooperative B public limited company
C franchisee D government

4. A …………………………………is where a group of individuals join together to achieve

a common purpose.
A public limited company B cooperative
C private limited company D stock exchange

5 A franchisee is an individual or business that ...........................

A buys a patent to operate a franchise business
B sells a patent to operate a franchise business
C borrows a patent to operate a franchise business
D lends a patent to operate a franchise business

QUESTION 1 2 3 4 5
ANSWER

Question 2 -Fill in the blanks with appropriate word below (5Marks)

Limited liability, Dividend, Share, Board of Directors, Certificate of Incorporation,

1. ….………………….is the part of company’s profits that is distributed to shareholders.

2. ….………………………………. are those who have been elected by shareholders to manage the company.

3. .……………………………… means that shareholders will lose only the initial amount invested in case the

company goes bankrupt.

4. A …………………………….is a voucher that represents a unit of capital.

5. ….……………………………… is a legal document showing the official date a company can start operating.
Question 3 - State whether the following statements are True or False. (5 Marks)

(a) Members in a cooperative have unlimited liability. ……………………….

(b) Cooperatives group many small producers to benefit from larger amount of capital. …………………

(c) Profits earned in a cooperative are distributed to members as dividend.………………………

(d) Members in cooperatives must necessarily consult each other before a final decision is taken. ………….

(e) In cooperatives, members do not get any support and financial aid. …………………………….

Question 4. In the table below, indicate whether each of the following statements is an advantage or a

disadvantage to a company. An example is given. (3 Marks)

Question 4.

a) Explain what you understand by a franchise business (2 Marks)

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