Career Mastery Hub
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- Mar 23, 2023
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1. What is the primary function of commerce?
a) Production
b) Distribution
c) Consumption
d) Exchange
2. Which of the following is a type of trade?
a) Domestic trade
b) Barter trade
c) Industrial trade
d) Wholesale trade
3. Which document is issued by the seller to the buyer when goods are sent on credit?
a) Invoice
b) Receipt
c) Bill of lading
d) Debit note
4. Which type of business organization is owned by shareholders?
a) Sole proprietorship
b) Partnership
c) Corporation
d) Cooperative society
5. Which of the following is a characteristic of a monopoly market?
a) Many sellers
b) Price takers
c) Single seller
d) Free entry and exit
6. What is a ledger used for in accounting?
a) To record day-to-day transactions
b) To record all journal entries
c) To maintain personal accounts
d) To summarize financial statements
7. Which of the following is NOT a factor of production?
a) Land
b) Labour
c) Capital
d) Money
8. Which term describes the ability to produce a good at a lower opportunity cost than another entity?
a) Absolute advantage
b) Comparative advantage
c) Monopoly
d) Specialization
9. What is the main objective of a business?
a) To create jobs
b) To provide goods and services
c) To maximize profit
d) To pay taxes
10. Which of the following is a type of insurance policy?
a) Marine insurance
b) Property insurance
c) Personal insurance
d) All of the above
11. What is the primary objective of bookkeeping?
a) To provide financial reports
b) To maintain the cash flow
c) To record all business transactions
d) To calculate profit and loss
12. What is the term for the portion of a company’s earnings distributed to shareholders?
a) Profit
b) Dividend
c) Interest
d) Bonus
13. What is the main purpose of a trade union?
a) To provide loans to workers
b) To represent employees in negotiations
c) To help workers find jobs
d) To run businesses for employees
14. In marketing, what does the term “4 Ps” refer to?
a) Product, Price, Promotion, Place
b) Price, Product, Packaging, Profit
c) Production, Promotion, Payment, People
d) Profit, People, Promotion, Product
15. Which of the following is a direct tax?
a) Value-added tax (VAT)
b) Corporate income tax
c) Sales tax
d) Customs duty
16. What is the definition of opportunity cost?
a) The value of the best alternative forgone
b) The cost of all available choices
c) The amount spent on a project
d) The total expenditure in an economy
17. What is the most liquid form of an asset?
a) Machinery
b) Land
c) Cash
d) Inventory
18. Which of the following refers to the process of collecting, recording, and analyzing financial information?
a) Marketing
b) Accounting
c) Management
d) Production
19. Which of the following is a liability for a business?
a) Land
b) Loans
c) Inventory
d) Equipment
20. In economics, what does GDP stand for?
a) Gross Domestic Production
b) General Domestic Product
c) Gross Domestic Product
d) Global Domestic Product
21. Which form of trade is conducted without the use of money?
a) International trade
b) Barter trade
c) Retail trade
d) Wholesale trade
22. What is the main purpose of a business plan?
a) To set goals for marketing
b) To provide financial data
c) To outline the business objectives and strategies
d) To monitor employee performance
23. What is depreciation?
a) A decrease in the value of a fixed asset over time
b) An increase in market share
c) A rise in the cost of goods
d) The profit earned from investments
24. Which type of account records revenues and expenses?
a) Capital account
b) Income statement
c) Balance sheet
d) Cash flow statement
25. What does the law of demand state?
a) As the price increases, quantity demanded decreases
b) As the price decreases, demand decreases
c) As price decreases, supply increases
d) None of the above
26. Which of the following best describes a partnership?
a) A business owned and operated by one person
b) A business owned by shareholders
c) A business owned by two or more individuals who share profits and liabilities
d) A government-owned business
27. What is meant by “economies of scale”?
a) The benefits gained by increasing the scale of production
b) The disadvantages of large-scale production
c) The increase in production costs as scale increases
d) The advantages of reducing production
28. Which financial statement shows a company's assets, liabilities, and equity?
a) Income statement
b) Cash flow statement
c) Balance sheet
d) Profit and loss statement
29. What does the acronym VAT stand for?
a) Value-added tax
b) Variable added tax
c) Value-adjusted tax
d) Volume-added tax
30. What is the main objective of public relations in business?
a) To increase sales
b) To enhance the company’s public image
c) To improve employee performance
d) To manage finances
31. What is meant by inflation?
a) A general decrease in prices
b) A decrease in the value of money
c) An increase in the general level of prices
d) A decrease in interest rates
32. Which of the following is a disadvantage of sole proprietorship?
a) Unlimited liability
b) Shared decision-making
c) High start-up costs
d) Limited profit
33. What is the primary function of a central bank?
a) Issuing currency
b) Controlling inflation
c) Regulating financial institutions
d) All of the above
34. What is the purpose of an audit?
a) To attract investors
b) To assess a company’s financial health and compliance
c) To increase sales
d) To calculate taxes
35. What is the primary aim of branding in business?
a) To reduce costs
b) To differentiate products from competitors
c) To comply with regulations
d) To increase production
36. What does “market segmentation” involve?
a) Dividing the market into distinct groups of buyers
b) Identifying competitors
c) Reducing market size
d) None of the above
37. What does a commercial bank primarily do?
a) Regulate the economy
b) Provide loans and accept deposits
c) Issue currency
d) Manage government finances
38. What is the term for a business agreement where one party gives another the right to use its brand and sell its products?
a) Franchise
b) Partnership
c) Joint venture
d) Licensing
39. Which type of cost varies directly with the level of output?
a) Fixed cost
b) Variable cost
c) Sunk cost
d) Marginal cost
40. What is liquidity?
a) The ability to generate profit
b) The ability to turn assets into cash quickly
c) The amount of debt a company has
d) The level of fixed assets
41. Which of the following best defines a cooperative?
a) A business owned by employees
b) A business operated for the mutual benefit of its members
c) A business run by the government
d) A non-profit organization
42. What does “e-commerce” refer to?
a) Conducting business via electronic platforms
b) Selling goods door to door
c) International trade
d) Government procurement
43. What is the function of insurance in commerce?
a) To eliminate all risks in business
b) To provide compensation for financial losses due to unforeseen events
c) To increase company profits
+255656480968
a) Production
b) Distribution
c) Consumption
d) Exchange
2. Which of the following is a type of trade?
a) Domestic trade
b) Barter trade
c) Industrial trade
d) Wholesale trade
3. Which document is issued by the seller to the buyer when goods are sent on credit?
a) Invoice
b) Receipt
c) Bill of lading
d) Debit note
4. Which type of business organization is owned by shareholders?
a) Sole proprietorship
b) Partnership
c) Corporation
d) Cooperative society
5. Which of the following is a characteristic of a monopoly market?
a) Many sellers
b) Price takers
c) Single seller
d) Free entry and exit
6. What is a ledger used for in accounting?
a) To record day-to-day transactions
b) To record all journal entries
c) To maintain personal accounts
d) To summarize financial statements
7. Which of the following is NOT a factor of production?
a) Land
b) Labour
c) Capital
d) Money
8. Which term describes the ability to produce a good at a lower opportunity cost than another entity?
a) Absolute advantage
b) Comparative advantage
c) Monopoly
d) Specialization
9. What is the main objective of a business?
a) To create jobs
b) To provide goods and services
c) To maximize profit
d) To pay taxes
10. Which of the following is a type of insurance policy?
a) Marine insurance
b) Property insurance
c) Personal insurance
d) All of the above
11. What is the primary objective of bookkeeping?
a) To provide financial reports
b) To maintain the cash flow
c) To record all business transactions
d) To calculate profit and loss
12. What is the term for the portion of a company’s earnings distributed to shareholders?
a) Profit
b) Dividend
c) Interest
d) Bonus
13. What is the main purpose of a trade union?
a) To provide loans to workers
b) To represent employees in negotiations
c) To help workers find jobs
d) To run businesses for employees
14. In marketing, what does the term “4 Ps” refer to?
a) Product, Price, Promotion, Place
b) Price, Product, Packaging, Profit
c) Production, Promotion, Payment, People
d) Profit, People, Promotion, Product
15. Which of the following is a direct tax?
a) Value-added tax (VAT)
b) Corporate income tax
c) Sales tax
d) Customs duty
16. What is the definition of opportunity cost?
a) The value of the best alternative forgone
b) The cost of all available choices
c) The amount spent on a project
d) The total expenditure in an economy
17. What is the most liquid form of an asset?
a) Machinery
b) Land
c) Cash
d) Inventory
18. Which of the following refers to the process of collecting, recording, and analyzing financial information?
a) Marketing
b) Accounting
c) Management
d) Production
19. Which of the following is a liability for a business?
a) Land
b) Loans
c) Inventory
d) Equipment
20. In economics, what does GDP stand for?
a) Gross Domestic Production
b) General Domestic Product
c) Gross Domestic Product
d) Global Domestic Product
21. Which form of trade is conducted without the use of money?
a) International trade
b) Barter trade
c) Retail trade
d) Wholesale trade
22. What is the main purpose of a business plan?
a) To set goals for marketing
b) To provide financial data
c) To outline the business objectives and strategies
d) To monitor employee performance
23. What is depreciation?
a) A decrease in the value of a fixed asset over time
b) An increase in market share
c) A rise in the cost of goods
d) The profit earned from investments
24. Which type of account records revenues and expenses?
a) Capital account
b) Income statement
c) Balance sheet
d) Cash flow statement
25. What does the law of demand state?
a) As the price increases, quantity demanded decreases
b) As the price decreases, demand decreases
c) As price decreases, supply increases
d) None of the above
26. Which of the following best describes a partnership?
a) A business owned and operated by one person
b) A business owned by shareholders
c) A business owned by two or more individuals who share profits and liabilities
d) A government-owned business
27. What is meant by “economies of scale”?
a) The benefits gained by increasing the scale of production
b) The disadvantages of large-scale production
c) The increase in production costs as scale increases
d) The advantages of reducing production
28. Which financial statement shows a company's assets, liabilities, and equity?
a) Income statement
b) Cash flow statement
c) Balance sheet
d) Profit and loss statement
29. What does the acronym VAT stand for?
a) Value-added tax
b) Variable added tax
c) Value-adjusted tax
d) Volume-added tax
30. What is the main objective of public relations in business?
a) To increase sales
b) To enhance the company’s public image
c) To improve employee performance
d) To manage finances
31. What is meant by inflation?
a) A general decrease in prices
b) A decrease in the value of money
c) An increase in the general level of prices
d) A decrease in interest rates
32. Which of the following is a disadvantage of sole proprietorship?
a) Unlimited liability
b) Shared decision-making
c) High start-up costs
d) Limited profit
33. What is the primary function of a central bank?
a) Issuing currency
b) Controlling inflation
c) Regulating financial institutions
d) All of the above
34. What is the purpose of an audit?
a) To attract investors
b) To assess a company’s financial health and compliance
c) To increase sales
d) To calculate taxes
35. What is the primary aim of branding in business?
a) To reduce costs
b) To differentiate products from competitors
c) To comply with regulations
d) To increase production
36. What does “market segmentation” involve?
a) Dividing the market into distinct groups of buyers
b) Identifying competitors
c) Reducing market size
d) None of the above
37. What does a commercial bank primarily do?
a) Regulate the economy
b) Provide loans and accept deposits
c) Issue currency
d) Manage government finances
38. What is the term for a business agreement where one party gives another the right to use its brand and sell its products?
a) Franchise
b) Partnership
c) Joint venture
d) Licensing
39. Which type of cost varies directly with the level of output?
a) Fixed cost
b) Variable cost
c) Sunk cost
d) Marginal cost
40. What is liquidity?
a) The ability to generate profit
b) The ability to turn assets into cash quickly
c) The amount of debt a company has
d) The level of fixed assets
41. Which of the following best defines a cooperative?
a) A business owned by employees
b) A business operated for the mutual benefit of its members
c) A business run by the government
d) A non-profit organization
42. What does “e-commerce” refer to?
a) Conducting business via electronic platforms
b) Selling goods door to door
c) International trade
d) Government procurement
43. What is the function of insurance in commerce?
a) To eliminate all risks in business
b) To provide compensation for financial losses due to unforeseen events
c) To increase company profits
+255656480968
