Second Term Examination Questions Business Studies JSS 1 Second Term Lesson Notes Weekly Topics

BUSINESS STUDIES JSS 1 SECOND TERM EXAMINATION

Time Allowed: 2 Hours
Instructions:

1. Answer all questions.
2. Read each question carefully before answering.
3. Do not engage in any form of examination malpractice.
4. Write your answers clearly.

PART A: OBJECTIVE QUESTIONS (30 QUESTIONS)

(Fill in the blank with the correct option: a, b, c, or d.)

1. The process of creating goods and services to satisfy human wants is called _______.
   a) Consumption
   b) Distribution
   c) Production
   d) Exchange

2. _______ is not a factor of production.
   a) Land
   b) Labour
   c) Profit
   d) Capital

3. The person who organizes the other factors of production and takes business risks is called _______.
   a) Banker
   b) Entrepreneur
   c) Customer
   d) Consumer

4. A person who sets up a business to make a profit is called an _______.
   a) Engineer
   b) Entrepreneur
   c) Economist
   d) Employee

5. The simplest form of business organization is _______.
   a) Partnership
   b) Public Corporation
   c) Sole Proprietorship
   d) Cooperative Society

6. A partnership consists of at least _______ persons.
   a) One
   b) Two
   c) Three
   d) Five

7. Public corporations are owned by _______.
   a) The government
   b) Private individuals
   c) Foreign investors
   d) Banks

8. A cooperative society is formed to serve the _______ of its members.
   a) Needs
   b) Enemies
   c) Bosses
   d) Rivals

9. A company owned by shareholders is called a _______.
   a) Sole proprietorship
   b) Limited liability company
   c) Public corporation
   d) Cooperative society

10. The process of recording business transactions is called _______.
    a) Accounting
    b) Banking
    c) Book-keeping
    d) Trading

11. The reward for labour as a factor of production is called _______.
    a) Rent
    b) Salary
    c) Profit
    d) Interest

12. The reward for land as a factor of production is _______.
    a) Wages
    b) Salary
    c) Rent
    d) Profit

13. The person responsible for keeping business records is called a _______.
    a) Lawyer
    b) Doctor
    c) Bookkeeper
    d) Banker

14. A business owned by two or more people who share profits and losses is called a _______.
    a) Corporation
    b) Sole proprietorship
    c) Partnership
    d) Cooperative society

15. The primary objective of a public corporation is to provide _______.
    a) Profit for owners
    b) Essential services
    c) Entertainment
    d) Marketing services

16. Which of the following is NOT a characteristic of a sole proprietorship?
    a) Easy to start
    b) Owner bears all risks
    c) Ownership is transferable
    d) Owner enjoys all the profits

17. A business that is owned and managed by the government is called a _______.
    a) Sole proprietorship
    b) Public corporation
    c) Partnership
    d) Private company

18. The people who buy goods and services are called _______.
    a) Producers
    b) Consumers
    c) Entrepreneurs
    d) Suppliers

19. An organization where goods and services are exchanged is called a _______.
    a) Factory
    b) Market
    c) Bank
    d) Hospital

20. Which of the following is an example of a cooperative society?
    a) Central Bank of Nigeria
    b) Lagos Transport Company
    c) Farmers’ Union
    d) Dangote Group

21. A private limited company is owned by _______.
    a) Government officials
    b) Shareholders
    c) The general public
    d) Foreign investors

22. The money paid to a company’s shareholders as profit is called _______.
    a) Capital
    b) Dividend
    c) Wages
    d) Bonus

23. Which of the following is NOT an advantage of book-keeping?
    a) Helps in decision-making
    b) Keeps record of all transactions
    c) Encourages fraud
    d) Helps to determine profit and loss

24. The use of “CR” in book-keeping means _______.
    a) Credit
    b) Current Revenue
    c) Currency Rate
    d) Cash Return

25. A company that sells shares to the public is called _______.
    a) Private limited company
    b) Sole proprietorship
    c) Public limited company
    d) Partnership

26. One major advantage of a partnership is _______.
    a) Easy decision-making
    b) Shared risk
    c) Unlimited liability
    d) Only one person manages the business

27. A consumer is someone who _______.
    a) Produces goods
    b) Sells products
    c) Buys goods for personal use
    d) Distributes products

28. The use of “Dr” in book-keeping means _______.
    a) Debit
    b) Direct Receipt
    c) Document Report
    d) Deposit Return

29. A public limited company is required to have at least _______ shareholders.
    a) One
    b) Two
    c) Seven
    d) Ten

30. The last step in book-keeping is _______.
    a) Recording transactions
    b) Making payments
    c) Balancing the account
    d) Opening a new ledger

PART B: THEORY QUESTIONS (30 QUESTIONS)

(Answer the following short-answer questions.)

31. Define entrepreneurship and explain two characteristics of an entrepreneur.

32. List and explain three factors of production.

33. Differentiate between a public limited liability company and a private limited liability company.

34. What are three advantages of a sole proprietorship?

35. Explain two reasons why bookkeeping is important in business.

36. Describe the double-entry system of bookkeeping.

37. Explain the difference between a consumer and a producer.

38. List four examples of public corporations in Nigeria.

39. What are three roles of an entrepreneur in business?

40. Explain two ways consumers can protect themselves in the marketplace.

41. Define a partnership and state two advantages of forming one.

42. Mention three ways the government regulates businesses in Nigeria.

43. State three differences between a cooperative society and a limited liability company.

44. Why is it necessary to monitor and control the use of chemicals in business operations?

45. Explain two common bookkeeping practices used in recording financial transactions.

46. List three sources of capital for starting a business.

47. Describe two ways businesses contribute to the economy of Nigeria.

48. Explain what “debit” and “credit” mean in bookkeeping.

49. Why is keeping financial records important for business growth?

50. What are three challenges an entrepreneur might face in running a business?

51. What is production?
52. List and explain the four factors of production.
53. Define entrepreneurship.
54. Mention three qualities of a good entrepreneur.
55. Explain the difference between a sole proprietorship and a partnership.
56. Define a public corporation and give two examples.
57. What is a cooperative society?
58. State two advantages of a partnership business.
59. What is the role of an entrepreneur in business?
60. Define book-keeping.

PART C: TRUE OR FALSE QUESTIONS (30 QUESTIONS)

61. A consumer is someone who sells goods. (False)
62. Entrepreneurship involves taking risks. (True)
63. Labour refers to human effort used in production. (True)
64. Capital is not important in starting a business. (False)
65. A sole proprietorship is owned by two or more people. (False)
66. A partnership requires at least two people to start. (True)
67. Public corporations are owned by private individuals. (False)
68. A cooperative society is formed for the benefit of its members. (True)
69. Limited liability means owners are responsible for company debts. (False)
70. Book-keeping helps to keep financial records. (True)

71. A sole proprietorship is owned by more than one person. (False)

72. Entrepreneurs take risks to start and manage businesses. (True)

73. A partnership is a business owned and run by only one person. (False)

74. Public corporations are owned by private individuals. (False)

75. A cooperative society is formed to help its members economically. (True)

76. Factors of production include land, labor, capital, and entrepreneurship. (True)

77. The government has no role in regulating business activities. (False)

78. Bookkeeping helps in keeping financial records of a business. (True)

79. A limited liability company can be owned by one person. (False)

80. Consumers have the right to demand quality goods and services. (True)

81. The public limited liability company allows shareholders to buy and sell shares. (True)

82. A sole proprietor has limited liability for the business’s debts. (False)

83. The use of “DR” in bookkeeping stands for debit. (True)

84. A folio in bookkeeping refers to the date of a transaction. (False)

85. Credit the receiver and debit the giver in a transaction. (False)

86. Entrepreneurs only start businesses for fun, not to make a profit. (False)

87. Monitoring and controlling chemicals in business is necessary for safety. (True)

88. A consumer is a person who produces goods and services. (False)

89. Bookkeeping helps a business detect errors and fraud. (True)

90. Businesses can operate without keeping any financial records. (False)

PART D: FILL-IN-THE-GAPS QUESTIONS (30 QUESTIONS)

(Complete each sentence with the correct word.)

91. The person who organizes and manages a business is called an _______.
92. Land, labour, capital, and entrepreneurship are the four _______ of production.
93. The type of business owned by one person is called _______.
94. The money used to start a business is called _______.
95. A company owned by shareholders is called a _______.
96. _______ is the process of recording financial transactions.
97. A business owned by two or more people is called a _______.
98. The government controls a _______ corporation.
99. In book-keeping, “CR” stands for _______.
100. The act of keeping proper records of financial transactions is called _______.
101. The person who organizes and manages a business is called an _______.
102. Land, labour, capital, and entrepreneurship are the four _______ of production.
103. The type of business owned by one person is called _______.
104. The money used to start a business is called _______.
105. A company owned by shareholders is called a _______.
106. _______ is the process of recording financial transactions.
107. A business owned by two or more people is called a _______.
108. The government controls a _______ corporation.
109. In book-keeping, “CR” stands for _______.
110. The act of keeping proper records of financial transactions is called _______.

111. Bookkeeping ensures that business transactions are recorded __________.

112. A sole proprietor is responsible for all the __________ of the business.

113. A public corporation is owned and controlled by the __________.

114. The two major forms of business ownership are sole proprietorship and __________.

115. __________ is the money used to start and run a business.

116. The abbreviation “F” in bookkeeping represents __________.

117. Monitoring and controlling chemicals help prevent __________ and pollution.

118. Entrepreneurs take __________ to establish and run businesses.

119. __________ refers to the careful and systematic recording of financial transactions.

120. The __________ of bookkeeping states that for every transaction, there must be a corresponding entry.

END OF EXAMINATION

This ensures all 120 questions are written in full, well-structured, and easy to understand for JSS 1 students.