1.Goods which we used simultaneously with other goods are referred to
as………………….
A. Substitutes
B. Complements
C. Given goods
D. Capital goods
2. A minor partner in partnership business is one:
A. who takes an active role in the running of the business.
B. who allows his/her name to be used as a partner.
C. below the age of 18 years.
D. With unlimited liability towards the debts of the business
3. The quantity of goods a person is willing to buy at a given price and time is
known as:
A. demand
B. stock
C. consumption
D. supply
4. Which one of the following insurance policies is compulsory for all vehicles?
A. Comprehensive
B. Fidelity guarantee
C. Accident policy
D. Third party
5. Excise duty is imposed on goods,
A. produced and consumed within a country.
B. Produced for export
C. Imported into a country for re- export.
D. Considered to be harmful.
6. A debenture where some property is pledged against is called:
A. Irredeemable debenture
B. Naked debenture
C. Mortgaged debenture
D. Redeemable debenture
7. On receipt of goods returned by the buyer, a seller issues
A. a debit note
B. a credit note
C. an invoice
D. a receipt
8. A person or firm in whose favour the payee transfers a cheque is known as:
A. the drawer
B. the drawee
C. an endorsee
D. an endorser
9. Which of the following documents is issued by the supplier when goods are
returned by the customer?
A. Credit note
B. Delivery note
C. Debit note
D. Dispatch note
10. The number of times goods are sold and replaced during a particular year
Is known as:
A. gross profit ratio
B. rate of turnover ratio
B. liquidity ratio
D. net profit ratio
11. A retail business that depends on extensive advertizing is the:
A. mail order shop
B. departmental store
C. Multiple shop
D. Self service stores
12. Advertising is important to a business because it…………………….
A. creates employment opportunities
B. increases the sale of goods and services.
C. increases the supply of goods and services
D. Reduces the price of goods and services
13. Calculate the opening stock for a business whose closing stock was
shs.3,600,000 and the average stock was shs. 3,000,000:
3
A. shs. 9,600,000
B. shs. 3,300,000
C. shs. 2,400,000
D. shs. 600,000
14. The government may set up a business enterprise to:
A. earn more profits
B. enlighten the public on how to conduct business
C. provide essential services
D. sell shares to members of the public.
15. The service provided by post office to visiting traders to receive their letters
for a particular period is called:
A. speed post
B. telegraphic address
C. business reply coupon
D. poste restante
16. An entrepreneur is rewarded with:
A. profits
B. rent
C. interest
D. wages
17. A trader insured a stock of goods worth shs. 14,000,000 for shs. 10,000,000
against theft. If all the goods were stolen, how much would the insured be
compensated?
A. shs. 10,000,000
B. shs. 24,000,000
C. shs. 4,000,000
D. shs. 14,000,000
18. The most suitable form of transporting ammunition, newspaper and gold
from Kampala to Sudan is……………
A. Road
B. water
C. Air
D. railway
19. The following are principle of co-operatives except.
A. Democratic administration
B. Open and voluntary membership
C. subrogation
D. payment of dividends according to members contribution
20. A jobber who deals in new issues of shows is called:
A. stag
B. bull
C. bear
D. broker
21. The two stages in production of goods are
A. Manufacturing and exchange
B. Extraction and manufacturing
C. Manufacturing and retailing
D. Industry and commerce
22. A type of marketing board established through the act of parliament is
A. Statuary market board
B. Advisory marketing board
C. Export marketing board
D. Producer marketing board
23. A trader who worries about a risk of fire damaging his property will seek the service of
A. Fire brigade
B. National water
C. Insurance company
D. Police
24. Given that profit margin of Kawumpuli and son enterprises is 20%, what is the mark up of the business
A. 33.33%
B. 40%
C. 25%
D. 20%
25. Who of the following provides a direct service?
A. Doctor
B. Builder
C. Shop keeper
D. Miner
26. Which of the following is not an advantage of locations of industries
A. Encouraging export promotion industries
B. Boosting import substitution industries
C. Increasing social costs
D. Acceleration urbanization
27. A cheque where no payee is named is called
A. Open cheque
B. Bearer cheque
C. Blank cheque
D. Order cheque
28. The following are non tariff barriers Except
A. Total ban
B. Trade embago
C. Quotas
D. Customs duty
29. What financial institutions facilitates the negotiation of bills of exchange?
A. Market clearing house
B. Forex bureau
C. Investment house
D. Discount house.
30. The major difference between a trade fair and a trade exhibition is
A. In a trade fair usually goods are not where as in a trade exhibition they are sold B. In trade fair goods are usually sold where as in a trade exhibition they are not usually sold
C. Trade fairs cover some few goods where as exhibitions cover a wider variety of goods
D. A trade fair is held at UMA Lugogo where as trade exhibition is held at Muteesa II Momorial stadium Wankuluku
31. Registered capital is
A. The maximum amount of capital a company can raise by selling shares
B. The total amount shareholders have been asked to pay
C. The amount of capital that has actually been received from share holders
D. The total face value of shares that have been issued
32. Golola has issued one cheque and instructed DFCU Bank to clear all his promoters through
A. Western Union
B. Standing order
C. Bank draft
D. Credit transfer
33. Which one of the following is drawn by a debtor?
A. Debit note
B. Credit note
C. Promissory note
D. Bill of exchange
34. If a trader is given a trade discount of 20% and a 50% cash discount for goods purchased at shs. 100,000, how much will he pay?
A. 75,000/=
B. 80,000/=
C. 76,000/=
35. The practice where valuable goods are insured by more than one insurance company is called
A. Re- insurance
B. Co- insurance
C. Double insurance
D. Multi- insurance
36. ……………………………reveals the gross profit of a trader
A. Balance sheet
B. Trading account
C. Profit and loss account
D. Trial balance
37. The relationship between country’s export prices and import prices is referred to as
A. Balance of trade
B. Terms of trade
C. Balance of payment
D. Terms of payment
38. Which of the following can be used to establish the net capital employed of the business?
A. Total assets minus current liabilities
B. Current assets minus current liabilities
C. Fixed assets plus current assets
D. None
39. Which of the following organizations is responsible for consumer protection
A. Uganda wild life authority
B. Uganda revenue authority
C. Uganda national financial transaction
D. Uganda bureau of statistics
40. E.F.T. as used in banking stands for
A. Electronic funds transfer
B. Express funds transfer
C. Economic financial transaction
D. Easy transfer Folio