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    Principles of Business For CSEC®: 2nd Edition

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    yuvita prasad

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    Principles of Business For CSEC®: 2nd Edition

    Uploaded by

    yuvita prasad
    157 views3 pages

    Original Title

    Chapter_3_online_test

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    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
    157 views3 pages

    Principles of Business For CSEC®: 2nd Edition

    Uploaded by

    yuvita prasad

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 3

    Principles of Business for CSEC®

    2nd edition

    Chapter 3: Establishing a business


    The following test paper contains four multiple-choice questions, to help you prepare for
    Paper 1, and one essay question, to help you prepare for Paper 2. If you decide to complete the
    paper under exam conditions, you should give yourself no longer than 30 minutes to complete all
    questions.

    1. Which of the following stages would typically come first in the creation of a new enterprise?
    (A) Seeking funds
    (B) Creating a business plan
    (C) Conceptualising
    (D) Operating
    (1 mark)

    2. From the options below, identify a prime user of a business plan created by Amin enterprises:
    (A) Amin Enterprises’ customers
    (B) Amin Enterprises’ competitors
    (C) Lenders of funds to Amin Enterprises
    (D) Former employees of Amin Enterprises
    (1 mark)

    3. Service industries such as a hairdresser or doctor’s surgery should be located:


    (A) In areas where raw materials are produced
    (B) Close to the market, for example where customers are located
    (C) Close to a transport terminal such as a railway station
    (D) Near to sources of power and other utilities
    (1 mark)

    4. The collateral value of an asset is:


    (A) The value of the item when it is first bought
    (B) The estimated value of the item if sold immediately in the market
    (C) The highest value of the item
    (D) The largest value that can be gained for the item
     (1 mark)

    1 Principles of Business for CSEC®, 2nd edition © Oxford University Press 2019
    Chapter 3: Establishing a business
    5. Ann got great reviews for the baked goods she brought to the staff party. She is now thinking
    of starting her own business, but she is not sure how to raise the funds to start a business.
    (a) List four (4) traits of an entrepreneur.

    
    (4 marks)

    (b) Outline four (4) reasons why Ann may want to establish her own business.

    
    (4 marks)

    (c) State two (2) reasons why it may be necessary for Ann to prepare a business plan.

    
    (2 marks)

    2 Principles of Business for CSEC®, 2nd edition © Oxford University Press 2019
    Chapter 3: Establishing a business
    (d) Explain the significance of collateral in securing capital to start Ann’s business.

    
    (4 marks)

    (e) Ann has been congratulated by a friend for her entrepreneurial drive. The friend says
    that Ann’s business should be seen as contributing to economic development. How can
    a small or large enterprise contribute to economic development?

    
     (6 marks)

    (20 marks)

    3 Principles of Business for CSEC®, 2nd edition © Oxford University Press 2019

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