1) The principle of span of control stipulates that?
A. The number of employees reporting to one superior should be kept to a workable maximum
B. An employee should report to only one superior
C. Managers must demand accountability from their subordinates
D. Resources have to be economized within the various divisions
2) The main advantage of a sole trader is the freedom to?
A. employ anyone he likes
B. take quick decision
C. seek advise from any source
D. plough all the profits3
3) The major objective of corporate mergers is to?
A. minimize the effect of taxation
B. increase financial advantage
C. enhance economies of sale
D. facilitate profit maximization
4) A provision in the charter of a company which gives holders of common stock the first option to purchase additional issues of the firm’s common stock is the
A. pre-emptive right
B. over-subscription right
C. ex-dividend right
D. shareholders right5
5) The conversion of raw materials into finished products creates
A. form utility
B. time utility
C. marginal utility
D. place utility
6) A form of money that has gone out of use is
A. paper money
B. commodity money
C. foreign money
D. bank money7
7) The activities aimed at finding customers needs and satisfaction can be described as
A. conceptual marketing
B. macro-marketing
C. socio-marketing
D. micro-marketing
8
Given:
I. Retail
II. Export
III. Transport
IV. Import
V. Insurance
VI. Banking and finance
VII. Wholesale
VIII. Communication.
8) Which of the above are aids to trade?
A. III, V, VI and VIII
B. I, II, III and VI
C. I, III, V, and VI
D. II, V, VI and VII
9) Communication process involves the transmission of a message over a selected channel to the
A. encoder
B. receiver
C. audience
D. sender1
10) The instruments of credit include
A. billboards and postal stamps
B. payment vouchers and statement of account
C. bills of exchange and salary voucher
D. bills of exchange and promissory notes
