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Questions and Answers
What is a primary benefit of privatization?
What is a primary benefit of privatization?
Nationalization leads to job losses for the population.
Nationalization leads to job losses for the population.
False
What is the main outcome of nationalization regarding profits?
What is the main outcome of nationalization regarding profits?
Profits go to the state for funding development projects.
Privatization improves efficiency because of competition and the drive to increase _____
Privatization improves efficiency because of competition and the drive to increase _____
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Match the following concepts with their definitions:
Match the following concepts with their definitions:
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Which of the following payment methods allows customers to make payments using their mobile phones?
Which of the following payment methods allows customers to make payments using their mobile phones?
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Credit card holders must repay the amount spent by the due date to avoid interest charges.
Credit card holders must repay the amount spent by the due date to avoid interest charges.
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Who owns and operates businesses in the public sector?
Who owns and operates businesses in the public sector?
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A _______ is a cheque issued by one bank to another for payments in the name of a specific person or organization.
A _______ is a cheque issued by one bank to another for payments in the name of a specific person or organization.
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Match the payment methods with their descriptions:
Match the payment methods with their descriptions:
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What is the primary aim of the private sector?
What is the primary aim of the private sector?
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Dividends in the private sector are paid to the government.
Dividends in the private sector are paid to the government.
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What type of products does the public sector primarily provide?
What type of products does the public sector primarily provide?
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What is one advantage of a credit union?
What is one advantage of a credit union?
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Franchises do not have to share their revenues with the franchisor.
Franchises do not have to share their revenues with the franchisor.
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What are the two types of limited companies?
What are the two types of limited companies?
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A business that uses the name, logo, and trading system of an existing business is called a ______.
A business that uses the name, logo, and trading system of an existing business is called a ______.
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Match the following terms related to business types with their descriptions:
Match the following terms related to business types with their descriptions:
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What is a defining characteristic of a sole trader business?
What is a defining characteristic of a sole trader business?
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A partnership can be formed by up to 50 persons.
A partnership can be formed by up to 50 persons.
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List one advantage of being a sole trader.
List one advantage of being a sole trader.
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In a sole trader business model, the owner has __________ liability.
In a sole trader business model, the owner has __________ liability.
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Which of the following is an example of a business that could operate as a sole trader?
Which of the following is an example of a business that could operate as a sole trader?
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Match the types of partnerships with their description:
Match the types of partnerships with their description:
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A partnership must always involve a written partnership deed.
A partnership must always involve a written partnership deed.
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What is one significant disadvantage of operating as a sole trader?
What is one significant disadvantage of operating as a sole trader?
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Which type of economic system has the least government intervention?
Which type of economic system has the least government intervention?
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In a Planned/Command Economy, the consumers have complete freedom in making economic decisions.
In a Planned/Command Economy, the consumers have complete freedom in making economic decisions.
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What are the two types of shares?
What are the two types of shares?
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A _____ is a loan given to a company from members of the public.
A _____ is a loan given to a company from members of the public.
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Match the types of Economic Systems with their characteristics:
Match the types of Economic Systems with their characteristics:
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What is one disadvantage of a Free Market economy?
What is one disadvantage of a Free Market economy?
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What do shareholders receive when a company makes a profit?
What do shareholders receive when a company makes a profit?
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In traditional economies, agriculture is usually not the main occupation.
In traditional economies, agriculture is usually not the main occupation.
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Which department is responsible for finding out what customers want?
Which department is responsible for finding out what customers want?
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The Personnel/Human Resource department is mainly responsible for managing the finances of a business.
The Personnel/Human Resource department is mainly responsible for managing the finances of a business.
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Name one responsibility of the Research and Development department.
Name one responsibility of the Research and Development department.
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The ______ department ensures high-quality production and manages raw materials.
The ______ department ensures high-quality production and manages raw materials.
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Match each department to their main function:
Match each department to their main function:
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Which stakeholder is responsible for providing high-quality goods and services?
Which stakeholder is responsible for providing high-quality goods and services?
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Stakeholders in a business only include employees and customers.
Stakeholders in a business only include employees and customers.
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What is one role of the Finance department?
What is one role of the Finance department?
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Study Notes
The Barter System
- Early people exchanged goods directly for goods they needed.
- This direct exchange is called "direct production".
- People hunted and gathered for basic needs.
- Later, surpluses led to barter exchange.
Advantages of Barter
- Allowed individuals to get rid of surplus goods.
- Enabled access to a wide variety of needed goods.
- Facilitated improvements in daily life.
- Spurred specialization and increased productivity, resulting in more wealth.
Disadvantages of Barter
- Double Coincidence of Wants: A person needed to find someone who had what they wanted and simultaneously wanted what they had.
- Exchange Rates: Determining the appropriate amount of one good to exchange for another was difficult.
- Divisibility of Goods: If a good couldn't be divided, bartering became a challenge.
- Storage of Wealth: Stored goods could spoil or otherwise deteriorate, hindering its use as a long-term value store.
Instruments of Exchange
- Barter System (early method)
- Bill of Exchange (document directing payment)
- Electronic Transfers (digital funds transfer)
- Telebanking (transactions via phone)
- E-commerce (internet-based buying/selling)
- Cheque (written instruction for payment)
- Money Order (method for overseas payments)
- Debit Cards (ATM cards for purchases)
- Credit Cards (payment with credit)
- Bank Draft (cheque from one bank to another)
- Telegraphic Money Transfer (electronic transfers)
- Internet Banking (online access to accounts)
- Mobile Money/Wallet (payment through app)
Brief History of Trading Instruments
- Money is anything generally accepted for purchase.
- Barter systems were used before money.
- Early forms of money included gold and silver.
- Modern money includes banknotes, coins, and electronic forms.
Private vs. Public Sector
- Private Sector: Businesses owned by individuals.
- Public Sector: Businesses owned by the government.
- Key differences include ownership, source of finances, distribution of profits, and types of businesses.
Forms of Business Organizations
- Sole Trader: One person owns the business.
- Partnership: Two or more people own the business.
- Co-operative: Business owned and controlled by its users.
- Franchise: Business using another's name and operating system.
- Limited Company (Private or Public): Separate legal entity; shareholders are liable only to the extent of their investment.
Privatization vs. Nationalization
- Privatization: Transferring government-owned firms to the private sector.
- Nationalization: Taking over private firms by the state.
- Benefits and disadvantages exist for both.
Economic Systems
- Traditional: Based on traditions and customs, often focused on agriculture.
- Free Market: Individuals control resources; minimal government intervention.
- Planned/Command: Government controls resources and production.
- Mixed: Combines elements of market and planned economies.
Functional Areas of a Business
- Production: Turning raw materials into goods or services.
- Marketing: Promoting and selling products/services.
- Personnel/Human Resources: Managing employees.
- Finance: Managing finances and cash flow.
- Research and Development: Improving products/services.
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Description
Test your understanding of the concepts of privatization and nationalization in this engaging quiz. Explore the benefits of privatization, the implications of nationalization on profits, and the role of public and private sectors. This quiz also covers payment methods and financial responsibilities.
