Principles of Business Quiz 1 Form 5___ Name: ____________________________

1. Multinationals and Conglomerates are forms of businesses. State:

(a) A difference between the 2 types of businesses. (1 mark)
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

(b) A reason for becoming a multinational. (1 mark)

_____________________________________________________________________________________

(c) 1 advantage and 1 disadvantage of multinationals. (2 marks)

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

2. Outline 2 differences between a planned economy and a free market economy. (4 marks)
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

3. Suggest 1 responsibility of the following persons to the business and state 1 consequence of not
adhering to the responsibility: (6 marks)
(a) Suppliers
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

(b) Employees
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

(c) Government
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

4. Explain the impact on employees due to the application of IT into production methods. (2
marks)
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

5. Why is it difficult for Private Ltd. Companies to sell shares as compared to Public Ltd.? (2 marks)
_____________________________________________________________________________________
_____________________________________________________________________________________
 6. Why don’t sole traders have limited liability? (2 marks)
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________