TOPICAL EXAMINATIONS

BUSINESS MANAGEMENT

SECTION A

1. Multiple choice questions

 (i) Informal authority flows upward and downwards or horizontally in

1.              Formal organizations
2.               Informal organization
3.               Business organization
4.              Strategic organization

(ii) Rules, duties and responsibilities of workers are given in writing in

1.              Formal organization
2.               Informal organization
3.               Business organization
4.              Strategic organization

(iii) Motivation based on force of fear is called

1.              Negative motivation
2.               Positive motivation
3.               Extrinsic motivation
4.              Intrinsic motivation

(iv) The practice of management was written by 

1.              Peter F. Drucker
2.               Terry
3.               Louis Allan
4.              Hendry Fayol

(v) To manage is to forecast and plan, to organize to command to co-ordinate and control. This definition was given by:-

1.              Peter F. Drucker
2.               Hendry Fay
3.               Louis Allan
4.              Terry.

(vi) Management function that regulates activities is called?

1.              Co – ordination
2.               Control
3.               Direction
4.              Planning

(vii) A statement which reflects future income and expenditure is called?

1.              Profit and loss
2.               Budget
3.               Balance sheet
4.              Cash account

(viii) Overall and strategic planning is done by the 

1.              Top management
2.               Middle level management
3.               Supervisory level management
4.              All of the above

(ix) If a general manager asks the sales manager to recruit some salesman on his behalf. It is an instance of:-

1.              Division of Authority
2.               Decentralization of authority
3.               Delegation of authority
4.              Delegation of responsibility

(x) While delegating, a superior delegates

1.              Only authority
2.               Authority and responsibility
3.               Authority, responsibility and accountability
4.              Authority, and responsibility but not accountability

(xi) Which of the following is true with respect to planning function?

1.              To make blue print of ideas and work
2.               To tell work allocation to all
3.               Monitoring weather things allocated are done properly
4.              None of the above.

(xii) Each subordinate should have only one superior whose command he has to obey. This is known as:

1.              Division of work
2.               Exception principle
3.               Unity of command principle
4.              Authority – responsibility principle

(xiii) In line and staff organization the staff performs the function of 

1.              Management
2.               Advising management
3.               Assigning responsibilities
4.              None of the above

(xiv) Planning function is mainly performed at:

1.              Top management level
2.               Middle management level
3.               Lower management level
4.              None of the above.

(xv) Leadership is a function of the following except

1.              Work group
2.               Product or service
3.               Leader
4.              Situation

(xvi) Which is not true in respect to planning?

1.              Planning is an intellectual activity
2.               Planning function is not performed by top management
3.               Planning is related to objectives
4.              Planning is forward looking

(xvii) Which of the following order indicates the correct logical order of managerial functions?

1.              Organizing, planning, directing, staffing, coordinating, and control
2.               Planning, organizing, staffing, directing, control, coordination.
3.               Planning, directing, organizing, staffing, control, coordination
4.              Organizing, planning, staffing, directing, control, coordination.

(xviii) Which of the following is the oldest form of organization?

1.              Functional organization
2.               Staff organization
3.               Line and staff organization
4.              Departmentation

(xix) Organization theory dials with:-

1.              Forms of business organization
2.               Structure of an organization
3.               Industrial relations
4.              Incentives and wage policy

(xx) The main advantage of functional organization is

1.              Specialization
2.               Simplicity
3.               Expert advice
4.              Experience

2. Match the following items.

SECTION B

3. (a) Define management

    (b) Explain six principles of management

4. (a) What does the term level of management mean?

    (b) Give the roles of each level of management 

5. Discuss the importance of management in an organization

6. (a) Briefly explain historical development of management 

    (b) Explain the meaning of the following management functions

(i)                 Planning

(ii)               Organizing

(iii)            Coordinating

(iv)             Staffing

(v)               Controlling

7. (a) Mention five types of organization

    (b) What are advantages of line organization?

    (c) Differentiate line organization from staff and line organization.

TOPICAL EXAMINATIONS

BUSINESS – UNITS

SECTION A

1. Multiple choice questions

 (i) The best definition of a sole trader form of business is?

1.           Business employs one person
2.            Business is owned by one person
3.            Firm has a single customer
4.           There is single firm in industry

(ii) One of the claimed advantages of a sole trader is that;

1.           Owners have limited liability
2.            Shares can be sold to be raise capital
3.            Decisions and responsibilities can be shared
4.           The owner has independence.

(iii) One disadvantage of sole trader is that

1.           Capital is limited to owners savings and bank loans
2.            Decision take too long to make
3.            They don’t have profit motive
4.           Owners may disagree.

(iv) One advantage of a partnership form of business organization is that:-

1.           All partners always have limited liability
2.            Shares can be sold on stock exchange
3.            The business survives the death of the partners
4.           The business has access to more capital than a sole trader.

(v) Which of the following is not a feature of private limited company?

1.           Shares can be issued to raise capital
2.            Shares can be bought and sold in stock exchange
3.            Owners of business have limited liability
4.           Business continues after death of share holders.

(vi) Which statement best applied to public limited company?

1.           It is owned by government and is in public sector
2.            Owned by share holders who can sell shares in stock exchange.
3.            It is quick and easy to set up with few legal formalities.
4.           It accounts can be kept private and it recovers little coverage in business.

(vii) Which of the statement about most public limited companies is true?

1.           Are owned and controlled by workers
2.            Are owned by directors but controlled by shareholders
3.            Owned by shareholders but controlled by directors
4.           They are owned and controlled by government.

(viii) In corporation, owners share profit but liability is limited to:

1.           Investment
2.            Distribution
3.            Theft
4.           Production

(ix) Which is an advantage of partnership?

1.           Ease of formation
2.            Owners share responsibility
3.            Limited liability
4.           Possibility of personal conflict

(x) In which type of organization does one person take all the risks?

1.           Corporation
2.            Partnership
3.            Monopoly
4.           Proprietorship

2. Match the following items:

SECTION B

3. (a) What is  a business unit?

    (b) Name four types of business organization

4. (a) What is sole proprietorship?

    (b) Give features of the proprietorship

    (c) Briefly explain advantages and disadvantages of proprietorship.

5. (a) What is partnership?

    (b) Discuss main features of partnership

6. What are advantages of Joint Stock Company over partnership?

7. Explain formation of forming

(i)              Partnership

(ii)            Private limited company

TOPICAL EXAMINATIONS

INSURANCE

SECTION A

1. Multiple choice questions

 (i) Which of these is not a term related to insurance?

1.               Indemnity
2.                Coverage
3.                Misuse alert
4.               Annuity

(ii) Insurance works on the principle of:

1.               Sharing of losses
2.                Probabilities
3.                Large numbers
4.               Randomness.

(iii) Insurance help to:-

1.               Prevent adverse situation from occurring
2.                Reduce financial consequences of adverse situation
3.                Negate all consequences of adverse situation
4.               Make assets continuously productive

(iv) The term risk includes

1.               Damage to machinery and property
2.                Impacts of health or life of a person
3.                Leakage of toxic products into atmosphere
4.               Effect on health life on neighborhood.

(v) The principle of ______ ensure that an insured does not profit by insuring with multiple insurers

1.               Subrogation
2.                Contribution
3.                Co – insurance
4.               Indemnity

(vi) Fidelity guarantee policies cover losses due to fraud by?

1.               Employee
2.                Borrowers
3.                Suppliers
4.               Customers.

(vii) A policy where policy holder makes a one – time payment of premium is called?

1.               Money back – policy
2.                Single premium policy
3.                Salary saving scheme policy
4.               Half – yearly policy

(viii) _________ may be described as a social device to reduce or eliminate risk of loss to life and property 

1.               Investment
2.                Saving
3.                Insurance
4.               Loan.

(ix) Which of the following types of insurance is mandatory?

1.               Motor own damage
2.                Motor third park legal liability
3.                Personal accident insurance
4.               Product liability

(x) The document which embodies the contract in insurance is called

1.               Security
2.                Policy
3.                Certificate
4.               None of these

2. Match the following items:

SECTION B

3. (a) Define the terms below

(i)                Insurance

(ii)              Insurance police

(iii)            Premium

(iv)            Sum insured

(v)              Risk

4. (a) Differentiate between insurance and assurance

    (b) Briefly explain historical development of insurance.

5. Discuss the need for insurance in our life.

6. (a) What is pooling of risk?

    (b) Why is pooling of risk important to insurance companies.

7. Explain the following principles of insurance 

(i)                Nature of contract

(ii)              Principle of insurable interest

(iii)            Principle of indemnity

(iv)            Principle of subrogation

(v)              Double insurance

(vi)            Principle of proximity cause

8. (a) Differentiate between property insurance and life insurance

    (b) Explain procedure followed when taking an insurance cover.

TOPICAL EXAMINATIONS

TAXATION

SECTION A

1. Multiple choice questions

 (i) The objective of Taxation by government are;

1.               Raising Revenue
2.                Maintain economic stability
3.                Remove disparities in distribution of income
4.               All of above.

(ii) Pick out a factor which is not a feature of indirect taxes

1.               Convenience
2.                Tax evasion is difficult
3.                Fair to the poor
4.               Powerful tool of economic policy

(iii) Which factor has no role in the shifting of a tax?

1.               Change in price
2.                Elasticity of demand and supply
3.                Nature of demand
4.               Income of the consumer

(iv) Impact of tax refers to:-

1.               Final money tax
2.                Immediate money burdens
3.                Indirect real burden
4.               None of the above

(v) Principle of equity means?

1.               Tax – payers should pay equal tax
2.                Tax to be paid should be certain
3.                Tax should be allocated fairly and reasonable
4.               Tax payment should be convenient

(vi) An example of direct tax is?

1.               Income tax
2.                VAT
3.                Custom duty
4.               Excise duty.

(vii) One disadvantage of sales tax is that:

1.               It is expensive
2.                It is cheaper
3.                It is regressive
4.               It is oppressive

(viii) An example of progressive tax structure is?

1.               VAT
2.                PAYE
3.                Excise duty
4.               Sales Tax

(ix) Non – payable money provided by government to another government is called?

1.               Investment
2.                Grants
3.                Loans
4.               Assistance

(x) An advantage of indirect tax is

1.               One pays lump sum
2.                Not everyone pays
3.                Less chance of tax evasion
4.               Government cannot control consumption.

2. Match the following items

SECTION B

3. (a) Define taxation

    (b) Give the purpose of Tanzania

4. Explain the following principles of Taxation 

a)                  Principle of simplicity

b)                 Principle of convenience 

c)                  Principle of certainty

d)                 Principle of equity

5. (a) Differentiate between direct and indirect taxation.

    (b) Explain two types of taxes on property

6. (a) Taxes on goods are regressive explain

    (b) What is proportional tax structure?

7. Explain five sources of government Revenue.

8. Discuss advantages and disadvantages of indirect tax.

9. What are advantages and disadvantages of direct tax?