Principles of Business Form 5 _____
1. State 2 characteristics of money. (2)
__________________________________________
2. State 2 functions of money. (2)
__________________________________________
__________________________________________
3. _____________________ refers to making banking
transactions using a computer network, while
_____________________ refers to trading goods using
online communications. (2)
4. ___________________ is a way to send funds
from one bank account to another anywhere in the
world. (1)
5. The owners of public sectors are governments
while the owners of private sectors are (1)
__________________________________________
6. The aim of a private sector is to make profits
while the public sector aims to (1)
__________________________________________
7. Do government sectors encourage competition?
_______________ (1)
8. Movement from the public sector to the private
sector is ____________________________ (1)
9. State 2 forms of business organizations. (2)
__________________________________________
10. In a Sole Trader business, who are responsible
for the debts of the business? (1)
___________________
17. Fill in the blanks. (6)
Types of Economic Advantages
Systems
Simple economic system
Mixed
Lots of goods/services to choose
from
Planned
Name: ________________________________
11. State 2 similarities of sole traders and
partnerships. (2)
__________________________________________
__________________________________________
__________________________________________
__________________________________________
12. State 2 differences between sole traders and
partnerships. (2)
__________________________________________
__________________________________________
__________________________________________
__________________________________________
13. Why is limited liability an advantage for
shareholders? (1)
__________________________________________
__________________________________________
__________________________________________
14. Which 2 companies have Limited liability
status? (2)
__________________________________________
15. Why do business men prefer a Franchise over a
new business? (1)
__________________________________________
__________________________________________
16. State 2 disadvantages of Franchise. (2)
__________________________________________
__________________________________________
__________________________________________
__________________________________________
Disadvantages
Resources are limited
Central planning is limited
18. State the functional areas of a business and give a description of each. (10)

Functional areas Function

19. Differentiate between a Shareholder and a Stakeholder. (2)

______________________________________________________________________________________

______________________________________________________________________________________

20. Fill in the blanks. (10)

Stakeholder Responsibility to management Management responsibility to them
s
Government

Employees

Shareholders

Consumers

The
environment

21. State 2 examples of a company being ethical and 2 examples of acting illegal in business. (4)
Ethical issues Illegal Issues

22. State what the following occupations are responsible for in business. (4)
Careers Description
Compliance
Officers

Strategic Planners

Web planners

Education Officers