ON CHOICE OF QUESTIONS TO BE ANSWERED: Answer all questions in Section
A and one question each from Sections Band C. Logical and clear prE;lsentationof ideas will earn you
more marks. All answers must be given in the answer booklet provided. Note that cancelation of
answers in Section A will attract heavy penalties.
INSTRUCTIONS
a) A corporation's requirement to make as much profit as possible.
b) A corporation's obligation to society that goes beyond the requirements of the law and
economics to take into account the social and environmental impact of its decisions.
c) A corporation's obligation to consider the impact of its decisions on the environment.
d) The duty of care a corporation has to its employees and customers.
2) Which of the following arguments was not put forward by Friedman in his criticism of the idea of
Corporate Social Responsibility?
a)
b)
c)
d)
Managers are not experts in social welfare or in dealing with environmental problems.
Managers are the agents of the owners and should act in their best interest.
Corporations have responsibilities.
Using funds for purposes other than profit maximization would be undemocratic.
a) The network of people who come into contact with a business.
b) All the organizations that work with a business.
c) All the s~pliers, customers and employees of a business.
d) Any indf\\'ldual, group, or organization that is affected by or can affect the activities of a
business.
a)
b)
c)
d)
The pursuit of short term profit maximization to increase the value of shares.
The pursuit of short term profit maximization to increase dividends.
That stakeholder engagement reduces profits.
The idea that CSR can help companies increase their profits and therefore dividends and share
value.
5) The moral case for CSR, i.e. that it is the right thing to do, is justified by which of the following
arguments?
a)
b)
c)
d)
That the corporation is a creation of society and should therefore serve its needs.
That the corporation is a legal creation and therefore cannot be a moral agent.
Large corporations do not have the power or resources to address society's problems.
Business decisions will have social and environmental consequences which will be
addressed by governments.
6) Which of the following is not a true statement in highlighting problems associated with bribery and
corruption?
a) It adds substantially to the cost of doing business.
b) It can undermine the democratic process.
c) It may divert resources away from public service projects such as schools and hospitals.
d) It is commonly accepted and just another feature of a properly working market economy.
7) In some countries the ratio of older people to total population is rising rapidly. This is
business because:
important to
a) It could lead to a falling tax burden.
b) It will increase the supplyoflabor.
c) It could change the ~attern of demand for goods and services. d) It could increase economic growth.
a) Low birth rates.
c) The immigration of workers from other countries.
b) High death rates.
d) High fertility rates.
a) A major improvement in a production process.
b) The launching of a completely new product.
c) A modification that improves an existing good or service.
d) A company's R&D facility
a) Scientists employed by a pharmaceutical company.
c) A techditlogical breakthrough at a state funded university.
b) A patent.
d) The brand name, Coke.
a) Depend exclusively on their own R&D efforts.
b) Spend large sums of money on R&D.
c) Always set up partnerships with university research laboratories.
d) May collaborate with rivals, suppliers or customers.
a) Can monitor their employees more closely.
d) Face increasing production costs.
b) Find it more difficult to control remote foreign subsidiaries. c) Do not need to redesign jobs.
a) It passes the laws affecting business.
b) It interprets and applies the law to business.
c) It puts laws and regulations into effect and ensures that the desired outcomes are achieved
d) It imprisons business executives who break the law.
a) Advancing loans that charge interest
c) Distributing high performance cars
b) Advertising and promoting alcoholic drinks
d) Selling shares short
a) It allows business to choose the most favorable national legal system to institute proceedings.
b) The terms used in international conventions are open to differing interpretations
c) The Uniform Commercial Code favors big US multinationals
d) It makes it easier to resolve contract disputes for firms involved in international trade and
investment.
a) Short term profits will increase
b) In the long term we are all dead
c) Maximizing short term profits endangers long term profits and increases risk.
e) Current operating costs will fall.
18) The primary purpose of business is to
a) meet societal needs b) carry out economic activities c) make profit d) all of the above.
19) Which ojihe following is acceptable business practice?
a) Unhealthy Competition b) Hoarding of goods c) Aggressive Publicity d) None of these.
20) One ofthe following is not a type of organisational structure
a) Matrix
b) Functional
c) Geographical
d) none of the above
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21) The total membership of ECOWAS at formation was
a) 15 b) 16 c) 17 d) 18
22) One of the objectives ofECOWAS is to a) eliminate customs duties b) non establishment of
common tariff c) harmonize system of government d) unified currency
23) Which of the following countries is not a member of ECOWAS
c) Nigeria
d) Senegal
a) Cameroon
b) Mauritania
24) The product structure of an organisation addresses
a) product design and improvement b)
related group of products c) all products of the organisations d) newly introduced products
25) The market structure of an organisation has focus on a) group of people to satisfy b) non
segmentation of market c) all of the above d) none of the above
26) The establishment of OPEC afforded oil producing countries the opportunity to participate in a)
income distribution accruing from oil sales
b) affairs of members' state c) supply of oil
production decision d) price fixing decision in the producer and outside countries.
27) Which of the following countries is not a member of OPEC
none ofthe above
a) Algeria b) Nigeria c) Liberia d)
28) E-business relied heavily on one ofthe following technological advancement
b) electricity
c) internet
d) computer
30) The finance unit of an organisation performs the following functions except a) maintenance of
working capital
b) preparation of financial statement
c) elimination of fraud
d) wages
and salary administration
33)
type of business involves the transformation of natural resources into
finished or semi-finished product.
38) The actual money expended to purchase or hire inputs needed for production is known as
_______
cost.
43) The
unit is responsible for allocation and utilization of funds
44) The
and
45) To embark on aggressive marketing is
46) To treat customers as the king is
units provided avenue for product design and improvement.
philosophy
philosophy
53) An effective business manager in America must necessarily be an effective business manager in
Nigeria
_
54) One of the objectives of government commercialization policy is to discourage foreign investors and
give more room for active participation of its indigenes in economic activities
_
55) A private limited liability company may be owned by an unlimited number of members but it is not
allowed by Ii1I law to sell its shares in the Stock Exchange Market.
_
56) Cooperative Societies are highly democratic; members have the privilege of transferring their shares
at will.
61) Incorporated companies contribute more to economic development of Nigeria than cooperative
societies
62) Presently, Nigerian business environment is more attractive to foreign investors than the Ghanaian
business environment
63) The Nigerian business environment is free of all problems that might hinder smooth running of
business
_
80) Extractive method of production is used in producing chairs, plastics and shoes
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_
1)
a) What are the functions performed by profit in business operations?
b) Business organizations operate as open social system. Mention eight essential
characteristics of open social system.
2)
a) What are the major weaknesses ofthe sole proprietorship type of business?
b) Mention the merits of incorporated company as a form of business organization.
3)
a) Lists the components of business organic functions and discuss any three of your choice.
b) Identify and discuss major problems of business organisations in Nigeria such as PHCN,
UBA and Nigeritte
4)
a) Discuss with the aid of examples the role of Nigerian government in business.
b) What is E-business and of what relevance is this concept in business activities and
transaction?