GSE202 (PRACTICE QUESTIONS) PREPARED BY
TRUTH
1. _________ is an integral part of the modern society
a. culture
Norms
c. business
d. all of the above
2. Among the following which is not a legal entity
b. sole proprietorship
c. company
b.
a. partnership
d. only c
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3. __________ business cannot be separated from the owner
a. joint
company
b. partnership
c. sole proprietorship and partnership
d. sole proprietorship
4. Partnership agreement is also called _________
a. agreement b. joint
investment
c. deed
d. contract
5. Profit of a business are shared according to partners ____________
a.
payment
b. donation
c. contribution
d. agreement
6. A company is legally formed by meeting the conditions stipulated by _________
a. IFRS
b. IAS
c. CAMA
d. only A and B
7. According to Drucker, if we want to know what a business is, we have to start
with its ________ a. plan
b. profit c. product
d. purpose
8. ________ is the implementation of creative inspiration a. creativity
b.
innovation
c. planning
9. Making a airplane is an example of _______
a. creativity
b. invention
c. innovation
d. idea
10. The combination of already existing concept, factors in a new formation is called
______ a. invention
b. innovation
c. creativity
d. synthesis
11. The life cycle of innovation is _________
a. w curve
b. c curve
c. optional curve
d. s curve
12. When innovation spread from innovator to other groups. This is called __________
a. innovation life span b. innovation depth
c. life cycle of innovation
d. A only
13. According to Rogers, creativity consist of ______ and _______
a. transformation and planning
b. idea and implementation
c. anticipation and commitment
d. all o the above
14. All innovation begins with creative idea while creativity is the starting point of
________ a. invention
b. production
c. A and C
d. innovation
15. Goods that are usually purchased frequently, immediately and with little effort by
the consumers is called __________
a. emergency goods b.
convenience goods
c. staples
d. none
16. Coca cola, biscuits, toothpaste are examples of __________ goods
a.
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impulse
b. emergency
c. abc
d. staples
17. The purchase of umbrella during raining season is an example of _________
goods
a. impulse
b. staples
c. emergency
d. urgent
18. Newspaper, magazine, and yoghurt are example of ________ goods
a.
convenience
b. emergency
c. impulse
d. A and C
19. _______ can be offer to market that satisfy need or want
a. goods
b. product
c. items
d. goods and product
20. What categories of goods are these: cars, stereo and suits
a.
commodity goods
b. expensive goods
c. soughted goods
d.
specialty goods
21. The goods that consumers do not know about are classified as _________ type of
goods.
A. unsought goods
b. unaware goods
c. hidden goods
d. C only
22. The vital element of the marketing mix is ________
a. product
b.
price
c. people
d. environment
23. According to CBN (2013) small and medium enterprise are entities with asset
base of _______ and labour force o ________
24. The numbers of employer in a cottage industry is _________
a. 1-15
b. 1-5
c. 1-10
d. 1-11
25. Small scale industry has total capital of _________
a. 5 million
b. 1.5 million
c. 100 million
d. 50 million
26. _______ is a dynamic that changes over time
a. product
b. process
c. environment
d. price
27. Business environment is categorized into __________ and ___________
a.
internal and extinction
b. internal and enternal
c. internal and
eternal
d. internal and external
28. _________ factor affect the firm performance of a firm
a. internal and
external
b. internal only
c. external only
d. only B
29. The factors that affect the objective and mission of an organization is __________
a. external factor
b. market decision
c. internal factor
d. a, b, and c
30. External environment are classified into _______ and _______
a. meso and
micro
b. mini and macro
c. micro and macro
d. all of
the above
31. _______ Environmental factor affect the activity and decision of a firm and have
direct bearing on the production
a. internal factors
b. external
factors
c. macro environment
d. micro environment
32. _______ country has the most conducive business environmentwith the highest
demand per income
a. Nigeria
b. South Africa
c. Ghana
d.
Kenya
33. External enviroment is measured by _______ and _______
a. internal and
external b. external and exchange rate
c. exchange rate and trade
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discrimination
d. exchange rate and trade openness
34. Which of the following is a major business opportunity in Nigeria
a. the
size of population
b. land mass
c. the rich culture
d. all of the
above
35. What is contained in CAC from 008
a. choosing business name
b. visit cooperate affairs commission
c. certificate of
registration
d. have a solicitor
36. Examples of intellectual properties are __________
a. copyright
b.
patients
c. designs
d. trademarks
37. _______ is a statutory right granted to an author of an original work
a.
trademark b. copyright and patent
c. designs
d. copyright
38. CAC has ________ members
a. 25
b. 26
c. 20
d. 15
39. CAMA 1990 in S.1-17 made provisions for the establishment of a commission
known as ________
a. CAPA
b. SEPA
c. NDLEA
d. None of
the above
40. _______ defined sole proprietorship as a form of business where one man sows,
reaps and harvest the output of his effort.
a) Aremu
b) Schumpeter
c) Sinha
d) Timms
41. _____ is a legal entity
a) company
b) sole proprietorship
c) cooperative
d) partnership
42. The primary objective of a business is....
a) to create a customer
b) profit
c) to satisfy the society
d) image and reputation
43. _____ clarifies business behaviour individually, and collectively and is based
upon what business
44. Values instrumentally and terminally.
a) purpose
b) idea
c) objective
d) environment
45. A generic industry include...
a) Farming
b) poultry farm
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c) Hunting
d) Cattle breeding
46. _____ is a situation where the basic material is analyzed and separated into a
number of products.
a) processing
b) assembly line
c) synthetic
d) analytical
47. Example of a synthetic product is....
a) copper
b) paint
c) lubricating oil
d) Sugar
48. The criteria for classifying business organizations in Nigeria include, except
a) total cost excluding land cost
b) type of business
c) number of employees
d) size
49. Nigeria runs what type of government?
a) anocracy
b) democracy
c) open anocracy
d) full democracy
50. The country with the worst conducive business environment is....
a) Nigeria
b) Egypt
c) Kenya
d) South Africa
51. Business environment can be defined as...
a) Total sum of internal and external factors affecting a business
b) Total sum of internal factors affecting the performance of a business
c) Sum of total external environment affecting business performance
d) Total sum of internal and external factors affecting the performance of a
business
52. External environment can be classified into....
a) controllable and uncontrollable environment
b) large and small environment
c) micro and macro environment
d) endogenous and exogenous environment
53. The demand capacity of an economy can be measured by....
a) GDP per capital
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b) aggregate demand
c) aggregate revenue
d) Market capitalization
54. Which of the following country has the largest market size?
a) Taiwan
b) South Africa
c) Nigeria
d) Egypt
55. The importance of free market, the invisible hand of self regulations, the
importance of enlightened self interest, belongs to...
a) Adam Smith
b) Wealth of Nation
c) economic theory
d) shareholder theory
56. The following are ways to speed up one's idea except
a) work tirelessly until a solution is met
b) Daydream the problem
c) practice your hubby
d) put the problem on the back corner
57. The industry/market analysis is...
a) operational
b) optional
c) critical
d) functional
58. The useful tool for analyzing an industry's attractiveness include, except...
a) the bargaining power of industry to the buyers
b) the rivalry among existing firms competing in the industry
c) the bargaining power of buyers
d) the bargaining power of suppliers to the industry
59. Product/service desirability cannot be achieved by...
a) in-home trials
b) buying intention survey
c) concept test
d) Prototype
60. Major components to be included in a financial feasibility analysis include,
except...
a) capital requirements
b) estimated earnings
c) Return on investment
d) can't remember this (wrong option)
61. An idea is fickle because of all these except ...
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a) it will tease you
b) it is clumsy
c) it seduces
d) it deceives
62. Financially or emotionally, in business, if you cannot afford to fail
a) do not start
b) just conduct feasibility analysis
c) firstly Calculate your chances
d) strengthen your financial prowess first
63. Figure1:Basic steps of the opportunity recognition process
64. Once entrepreneur perceives opportunity, what is next?
a) scan the environment
b) write a business plan
c) launch the business
d) site a land
65. Demands are wants for specific product backed by an ...
a) ability to supply
b) ability to satisfy human wants
c) ability to pay
d) ability to produce
66. Which is not a customer market?
a) consumer market
b) business market
c) people market
d) non-profit and government market
67. The 4Ps of marketing include, except...
a) production
b) place
c) price
d) promotion
68. Which is not a marketing mix?
a) a customer solution
b) cost
c) consumption
d) communication
69. The best method for generating information quickly is....
a) personnel interview
b) personal interview
c) online interview
d) telephone interview
70. Borrowing from friends and relatives is...
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a) internal source of finance
b) Long term internal source of finance
c) short term external source of finance
d) medium term external source of finance
71. _____represents the largest source of financing
a) Term loans
b) sale of fixed assets
c) Trade credit
d) borrowing from cooperative
72. The introduction of external sources of finance will either directly or indirectly
expose organization to...
a) financial buoyancy
b) financial risk
c) everlasting sources of funds
d) improved financial provisions
73. ______ are amounts owing on services rendered to the firm which payment has
not been made.
a) accruals
b) term loans
c) trade credits
d) factored debts
74. In granting bank loan, this is not necessarily provided.
a) the security pledge for the loan
b) the time or duration of the loan
c) how the loan will be paid
d) the purpose for which the loan is required
75. The trade bill is held by the seller until the end of the agreed period usually...
a) 30,60,90 or 180 days
b) 25,45,60 or 190 days
c) 30,60,90 or 190 days
d) 30,45,60 or 120 days
76. Long-term finance is used in financing
a) current investment
b) non-government project
c) capital investment
d) business organization investment
77. Bonds are paid in multiple of....
a) #10,000
b) #10.00
c) #1000
d) #100,000
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78. Under the scheme of ACGSF, ____of any amount in default net of any amount
realized from the collateral held is made to the bank
a) 50%
b) 25%
c) 12.5%
d) 75%
79. One of the benefit rural poor derives from RUFIN is NACRDB through....
a) improved financial management
b) staff training
c) production of suitable goods to the market
d) provisions of fertilizer and machineries
80. As an entrepreneur, one of these acts does not affect you.
a) Company and Allied Matters Act
b) National Act
c) Evidence Act
d) The National Agency for Food and Drugs Administration and Control Act
81. IFRS means…
a) Internal Financial Reporting Standards
b) International Financial Records standardization
c) International Financial Reporting Standards
d) Internal Financial Resources Standards
82. IFRS 13 is a measure of?
a) value income
b) capital value
c) current value
d) fair value
83. _____ are amounts owed by the business to the outsiders
a) liabilities
b) accruals
c) assets
d) fixed debts
84. Fixed assets are...
a) current assets
b) assets with life span less than a year
c) assets with life span of a year
d) assets with life span greater than a year
85. Short term external source of finance is characterized by a period of....
a) less than 12 months
b) less than 13 months
c) less than 24 months but more than a year
d) less than 14 months
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86. The valley of death exists between the...
a) TRL2 and TRL3
b) TRL2 and TRL7
c) TRL3 and TRL7
d) TRL1 and TRL9
87. Corporate Affairs Commission was established in...
a) 1991
b) 1968
c) 1993
d) 1990
88. The first step in registering a business is...
a) visiting Corporate Affairs Commission
b) choosing a business name
c) collection of certificate of registration
d) collection of search form from registrar general
89. SON means...
a) Standards Organization of Nigeria
b) Specifications Organization of Nigeria
c) Standards Organizations of Nigeria
d) Specifications Organizations of Nigeria
90. _______ is an agency under the federal ministry of health that is responsible for
regulating and controlling the manufacture, importation, exportation,
advertisement, distribution, sale and use of food, drugs, cosmetics, medical
devices, chemical and packed water.
a) NAFDAC
b) SON
c) CAC
d) NDLEA
91. NAFDAC was established in...
a) 1994
b) 1993
c) 1990
d) 1991
ANSWERS
1. C
46. D
2. B
47. B
3. D
48. D
49. C
5. C
50. A
6. C
51. D
7. D
52. C
8. C
53. A
9. B
54. C
10. D
55. D
11. D
56. A
12. C
57. C
13. C
58. A
14. D
59. B
15. B
60. A
17. C
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16. D
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4. C
61. B
62. A
18. C
63.
19. B
64. A
20. D
65. C
21. A
66. C
22. C
67. A
23. 5M to 500 million and 11-200
68. C
24. C
69. D
25. D
70. C
26.
71. C
27. D
72. B
73. A
29. C
74. B
30. C
75. A
31. D
76. C
32. B
77. C
33. D
78. D
34. A
79. B
35. B
80. C
36. B
81. C
37. D
82. D
38. D
83. A
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28. D
41. C
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40. C
84. D
U
39. D
85. A
86. C
42. A
87. D
43. B
88. B
44. A
89. A
45. B
90. A
91. B