Business Management 2001 WASSCE-Past Questions and Answers-WAEC

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Business Management 2001 WASSCE

WASSCE Past Questions and Answers for Business Management 2001 is our focus at this moment. Indeed, this e-learning material has been put together to help students to pass their BM WAEC exams very easily. Obviously, I believe you are imagining what our website can offer you? Truly, our site will offer you a lot of guide for your education. So as to enjoy a lot from the site, continue reading on.

 

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Table of Content

 

General Overview

Indeed, WASSCE Past Questions and Answers for Business Management 2001 is educareguide current subject of attention. Surely, if you use this guide to prepare, you will pass your BM exams . Whenever examination scares you, then it means your preparation is inadequate. Truly, the suggested answers we provide you in our content is according to WASSSCE Business Management Marking Scheme.

 

In addition to business management, we also cover subjects like English, Core Mathematics, Integrated Science, Economics, Geography, Government, etc. Surely, business is life and life is business. Thus our content will also assist you in all aspects of life. Moreover, students from Nigeria, Ghana, Sierra Leone, The Gambia and Liberia use this online resource to prepare for BM exams.

 

The Nature of the Examination

Indeed, there are two Papers in the examination, (and these are Paper 1 and Paper 2). Furthermore, there are two sections in the Paper 1 (i.e. Section A and Section B). Now, the Section A is an Objective Test and Section B is a Case Study. Moreover, there are 50 questions in the Objective test, and the Case Study has some question under it for you to answer. Finally, there are 10 questions in the Paper 2.  Surely, the question is tests the student’s general understanding of the various topics under business management.

 

The Summary of the Paper

The WASSCE Business management Paper for 2001 can summarized below:

  • 2001 WASSCE Business Management Paper One – Section A;
  • 2001 WASSCE Business Management Paper One – Section B;
  • 2001 WASSCE Business Management Paper Two

 

Business Management 2001 WASSCE-Past Questions and Answers Paper 1

 

Business Management 2001 WASSCE-Past Questions and Answers- Paper 1 – Section A

 

Let me show you how to find the answers to the Business Management Questions – Paper 1, Section A. To clarify that, when you read a question, just click on this symbol (˅) that follows the question. After doing so, the answer will drop down for you. In fact, it is a very simple task. However, for the purposes of evaluating yourself, you may want to answer the before reviewing the suggested answer (or solution)

 

  1. An organization may be described as a business when it   
      C   is the answer -Business Management 2001 WASSCE   
    1. is controlled by directors.
    2. has a profit motive.
    3. owns assets and funds.
    4. is a legal entity.

 

  1. A partner’s contribution to a partnership may be in any of the following forms except   
      B   is the answer -Business Management 2001 WASSCE   
    1. assets.
    2. debentures
    3. expertise
    4. funds

 

  1. Those who are engaged to undertake the formation of a public limited liability company are called   
      D   is the answer -Business Management 2001 WASSCE   
    1. brokers
    2. consultants
    3. directors
    4. promoters

 

  1. Shareholders are owners of a company but debenture holders are its   
      A   is the answer -Business Management 2001 WASSCE   
    1. creditors
    2. entrepreneurs
    3. guarantors
    4. promoters

 

  1. Social responsibility in business implies that an organization   
      B   is the answer -Business Management 2001 WASSCE   
    1. focuses only on its economic role.
    2. plays a direct role in meeting community needs.
    3. ignores environmental issues.
    4. engages in fair labour practices.

 

  1. Plans which are used to solve recurrent problems in an organization are   
      A   is the answer -Business Management 2001 WASSCE   
    1. standing plans
    2. strategic plans
    3. tactical plans
    4. contingency plans

 

  1. The management function which helps various units of an organization to operate harmoniously is   
      B   is the answer -Business Management 2001 WASSCE   
    1. planning
    2. co-ordinating
    3. budgeting
    4. decision-making

 

  1. The prime responsibility for strategic management in an organization lies with   
      B   is the answer -Business Management 2001 WASSCE   
    1. the board.
    2. functional managers.
    3. unionized staff.
    4. the government.

 

 

  1. When the Purchasing Manager of an organization finds out the different models of computers available on the market and their prices, he is   
      C   is the answer -Business Management 2001 WASSCE   
    1. analyzing the problem.
    2. defining the problem.
    3. developing alternatives
    4. gathering information.

 

 

  1. The decision-making process ends when   
      C   is the answer -Business Management 2001 WASSCE   
    1. alternative courses of action have been developed.
    2. an alternative course of action has been chosen.
    3. the decision has been implemented.
    4. final results have been measured.

 

  1. What is the first step in the decision-making process?   
      A   is the answer -Business Management 2001 WASSCE   
    1. Identifying the problem            
    2. Developing alternatives
    3. Evaluating each alternative
    4. Gathering information

 

  1. Which of the following is not a function of the office?   
      C   is the answer -Business Management 2001 WASSCE   
    1. Retrieving information
    2. Safeguarding information
    3. Purchasing stationery
    4. Processing information

 

  1. Personal letters received in an office should be   
      A   is the answer -Business Management 2001 WASSCE   
    1. delivered straight to the addressee.
    2. entered immediately in incoming mail register.
    3. returned as unclaimed.
    4. opened immediately and delivered to the addressee.

 

  1. Which of the following is not a scheduling aid for a private secretary?   
      B   is the answer -Business Management 2001 WASSCE   
    1. Calendars
    2. Reminder pad
    3. Appointment slip
    4. Routing slip
  2. A head of department in an organization may request certain items to be bought into stock by completing   
      B   is the answer -Business Management 2001 WASSCE   
    1. a purchase requisition form.
    2. a stores requisition form.
    3. an order form.
    4. an enquiry form.

 

  1. The file which reminds a secretary of upcoming due dates for assignments is a   
      C   is the answer -Business Management 2001 WASSCE   
    1. Crisis file
    2. Special events file
    3. Chronological file
    4. Tickler file

 

  1. The final step in the filing process is   
      C   is the answer -Business Management 2001 WASSCE   
    1. Sorting
    2. Storing
    3. Inspecting
    4. Indexing

 

  1. Details of people who visit an organization could be found in   
      D   is the answer -Business Management 2001 WASSCE   
    1. a diary
    2. a personal file
    3. an or6nizational chart
    4. the reception register

 

  1. An organization chart would help an executive secretary to know   
      A   is the answer -Business Management 2001 WASSCE   
    1. in detail the duties and responsibilities of all staff.
    2. the mission and purpose of the organization.
    3. the reporting positions in the organization.
    4. the procedures and rules of the organization.

 

  1. In which of the following organization structures are the lines of command dual rather than single?   
      C   is the answer -Business Management 2001 WASSCE   
    1. Functional
    2. Geographical
    3. Matrix
    4. Product

 

  1. The right to issue directives and expend resources in an organization is   
      C   is the answer -Business Management 2001 WASSCE   
    1. leadership
    2. management
    3. authority
    4. power

 

  1. One of the disadvantages of a decentralized records management system is that   
      D   is the answer -Business Management 2001 WASSCE   
    1. it increases the need for duplicate records.
    2. authority and responsibility for records keeping are vested in one person.
    3. records are less accessible to users.
    4. it is easy to preserve confidentiality.

 

  1. Which of the following is an upward communication device used in organizations?   
      C   is the answer -Business Management 2001 WASSCE   
    1. Policy statements
    2. Job instructions
    3. Suggestion boxes
    4. Office manual

 

  1. A documentary guide which explains policies and provides general information affecting employees in an organization is   
      B   is the answer -Business Management 2001 WASSCE   
    1. organizational chart.
    2. office manual.
    3. job description
    4. job specification.

 

  1. When communication does not draw out the expected response form the recipient, it is   
      C   is the answer -Business Management 2001 WASSCE   
    1. effective
    2. timely
    3. defective
    4. understood

 

  1. The term discharge in Contract law means   
      A   is the answer -Business Management 2001 WASSCE   
    1. an act which frees a person from legal obligation.
    2. an act that binds a person to a legal obligation.
    3. the parties to a contract have executed all promised terms and conditions except minor details.
    4. one party to a contract has repudiated his liability under the contract.

 

  1. Which of the following is not a remedy for beach of contract?   
      C   is the answer -Business Management 2001 WASSCE   
    1. Injunction
    2. Specific performance
    3. Rescission and ratification
    4. Substantial performance

 

  1. The rule for acceptance by post is that postal acceptance takes place at the   
      A   is the answer -Business Management 2001 WASSCE   
    1. time of posting..
    2. post office.
    3. post office counter
    4. time of opening the envelope.

 

  1. An agent’s fiduciary relationship with his principal means that he   
      B   is the answer -Business Management 2001 WASSCE   
    1. is not bound to obey ali instructions.
    2. must be loyal to the principal in all transactions.
    3. can refuse to communicate all facts about the subject-matter of the agency
    4. is free to make secret profits on transactions.

 

  1. The obligation of an agent to his principal includes   
      C   is the answer -Business Management 2001 WASSCE   
    1. acting beyond the scope of authority.
    2. using acquired confidential information to advance personal interest.
    3. exercise reasonable judgement, prudence and skill.
    4. keeping money collected on behalf of his principal in his personal account.

 

  1. An individual who is authorized to undertake business transactions on behalf of another person is known as   
      D   is the answer -Business Management 2001 WASSCE   
    1. a principal.
    2. a promissory
    3. a third party
    4. an agent.

 

  1. A bill of exchange drawn on a banker and payable on demand is   
      C   is the answer -Business Management 2001 WASSCE   
    1. a promissory note.
    2. a postal order.
    3. a cheque.
    4. an order.

 

  1. One benefit that a country derives from joining an economic group is   
      A   is the answer -Business Management 2001 WASSCE   
    1. extension of its international market.
    2. decrease in the volume of exports.
    3. rationalization of prices of its products.
    4. increase in the volume of its imports.

 

  1. Inflation may be caused when money loses its quality of   
      D   is the answer -Business Management 2001 WASSCE   
    1. divisibility
    2. durability
    3. portability
    4. scarcity

 

  1. To countermand payment of a cheque is to   
      ¢   is the answer -Business Management 2001 WASSCE   
    1. stop its payment.
    2. issue a standing order.
    3. make its payment conditional
    4. countersign it.

 

  1. Under the PAYE system of tax collection the onus of collection is on the   
      B   is the answer -Business Management 2001 WASSCE   
    1. employer
    2. employee
    3. Government
    4. consumers

 

  1. Locally manufactured goods meant for export attract   
      D   is the answer -Business Management 2001 WASSCE   
    1. customs drawback.
    2. direct tax.
    3. excise drawback.
    4. tariff

 

  1. Risk management helps to   
      B   is the answer -Business Management 2001 WASSCE   
    1. eliminate risks
    2. minimize the effects of risks.
    3. regulate concurrent of risks.
    4. maximize the effects of risks.

 

  1. An organization which specializes in risk bearing is known as   
      C   is the answer -Business Management 2001 WASSCE   
    1. an acceptance house.
    2. a discount house.
    3. an insurance company
    4. a stock exchange.

 

  1. The set of coded instructions by which the computer operates is its   
      D   is the answer -Business Management 2001 WASSCE   
    1. compiler
    2. interpreter
    3. Operator
    4. program

 

  1. The computer comprises mainly   
      C   is the answer -Business Management 2001 WASSCE   
    1. arithmetic and storage units.
    2. P.U. and the operating system.
    3. hardware and software
    4. input device and printer.

 

  1. The advantages derived from the use of computers does not include   
      B   is the answer -Business Management 2001 WASSCE   
    1. accuracy
    2. infallibility
    3. Security
    4. speed

 

  1. The process by which a newly recruited employee is introduced to an organization and briefed on his expected job is referred to as   
      B   is the answer -Business Management 2001 WASSCE   
    1. introduction training
    2. induction training.
    3. first training
    4. on-the-job training

 

  1. An aptitude test is used in the selection process to   
      D   is the answer -Business Management 2001 WASSCE   
    1. determine a person’s interests.
    2. Measure job related knowledge
    3. Measure capacity or potential ability to learn
    4. attempt to measure personality characteristics.

 

  1. Which of the following methods of training would be suitable for training typists?   
      B   is the answer -Business Management 2001 WASSCE   
    1. Job rotation
    2. Vestibule training
    3. Special projects
    4. Role playing

 

  1. Which of the following is not a method used in management development?   
      D   is the answer -Business Management 2001 WASSCE   
    1. Apprenticeship
    2. Case studies
    3. Job rotation
    4. Coaching

 

  1. The type of channel organization in which there are no intermediaries is known as   
      A   is the answer -Business Management 2001 WASSCE   
    1. direct marketing.
    2. reverse channel.
    3. dual distribution
    4. selective distribution.

 

  1. Products that experience intense but brief periods of popularity are   
      B   is the answer -Business Management 2001 WASSCE   
    1. fads
    2. fashions
    3. brands
    4. family brands

 

  1. A brand is the   
      D   is the answer -Business Management 2001 WASSCE   
    1. identifying name or term of a product.
    2. legal right to use a symbol exclusively.
    3. part of the name of a product that can be spoken.
    4. name, term or symbol distinguishing a good or service.

 

  1. The document given to an incorporated organization to start business in Ghana is   
      A   is the answer -Business Management 2001 WASSCE   
    1. certificate of commencement of business.
    2. certificate of incorporation.
    3. share certificate.
    4. Memorandum of Association

 

I’m sure you are going to evaluate your performance with regards to the objective questions above. Let me emphasize again that the answers to the objective questions can be found by clicking on the symbol (˅) just after the question.

Now let’s proceed to the Paper 1 – Section B just below:

 

Business Management 2001 WASSCE-Past Questions and Answers- Paper 1 – Section B

 

This section of the examination is a case study questions. Please read the case carefully before attempting the questions. As I have always said, it is better to first answer the questions on your own before referring to the answer from the drop-down symbol.

Let me show you how to find the answers to the Business Management Questions – Paper 1, Section B. When you read a question, just click on this symbol (˅) beside it, and the answer will drop down for you. It is a very simple task.

 

CASE STUDY

Read the following case and answer the questions that follow:   

Dan Mark Company Limited

DanMark Company Ltd. was incorporated six years ago to undertake the import and distribution of general goods. The company, which began as a family-owned business headed by Mr. Dan Quarcoe with assistance from new family members now, employs over 200 workers.

DanMark has, over the years, enjoyed a large market share for the brand of products they stock with attendant high sales.

Mr. Dan Quarcoe has now evolved into a busy chief executive deeply involved in the processes of planning, organizing, staffing, motivating and controlling; a job he always accomplishes most efficiently together with his team of capable functional managers

The chief executive of DanMark attributes much of his success in handling his busy daily schedules to the contribution of his experience personal assistant, Mrs. Markwei. In a glowing tribute to Mrs. Markwei at an annual awards dinner last year Mr. Dan Quarcoe described his assistant as being tactful in scheduling appointments and handling visitors. He added that Mrs. Markwei was very efficient in arranging important meetings as well as business trips. The most fascinating quality, says Mr. Quarcoe, is his assistant’s detailed knowledge of all aspects of the company’s operations and her ability to solve problems with tact and speed.

In recent times however a series of surveys conducted by the company indicate that sales was decreasing and the company was losing grounds to its competitors. The company’s board has identified the key Changes needed to improve the company’s fortunes as reviewing the company’s management philosophy and organizational structure. A close look at the company’s present organizational structure reveals that the tall structure with many levels and relatively small span of control had been maintained as the company expanded over the years. Management believes that this traditional structure restricts employee initiative and productivity.

An employee suggestion scheme recently instituted by the company has shown that most employees preferred a flatter structure, which has relatively greater benefits than the current one. The contention of the workers is that they are well trained and very experienced so a flatter organizational structure which will encourage more delegation of authority was urgently required.  

 

 

1.   Explain what is meant by Incorporation

Suggested Answer:   

Incorporation is a legal state that a company assumes when it is fully registered under the laws of a country. This happens when the Registrar of Companies issues a certificate of incorporation to the promoters of a company. The certificate gives the business a state of a legal entity. Thus, the business operates in its own name and it is capable of suing and be sued.  

 

2.   Identify four ways by which Mr. Quarcoe’s personal assistant could help him to cope with his busy daily schedules.

Suggested Answer:   

Mr. Quarcoe’s personal assistant could help him cope with his busy schedules by:

  1. Scheduling of appointments
  2. Arranging important meetings
  3. Handling of visitors
  4. Arranging important business trips
  5. Solving problems with tact and speed  

 

3.   Mention four scheduling and memory aids which assist Mrs. Markwei in the performance of her duty as a personal assistant to the Chief Executive.

Suggested Answer:   

  1. Calendar
  2. Diary
  3. Computer
  4. Appointment slip
  5. Calculator
  6. Typist’s desk book  

 

4.   (a) Explain what is meant by a wide organisational structure.

Suggested Answer:   

Wide organizational structure is a management structure with few senior level management positions, shorter chain of command and a shorter channel of communication. It has an overall broad span of control and relatively few hierarchical levels. Authority flows faster from Managing Director to the Departmental heads. It is also known as a flat organizational structure.  

 

4.   (b) State three ways in which the company could benefit from adopting the wide organizational structure with wide span of control.

Suggested Answer:   

  • It encourages delegation among the managers involved.
  • It has fewer communication and co- ordination problems. Since there are fewer levels, accurate information gets to t he intended people at the right time.
  • It motivates rank-and-file employees to take grater responsibility for their own output.
  • It leads to a faster flow of authority from the top to the bottom because few senior level managers are involved in the process.  

 

 5.   Mention two factors which encourage the adoption of the wide organizational structure with wider span of control.

Suggested Answer:   

  • Delegation: – Where there are competent and trusted subordinates, delegation
    could encourage the adoption of the wide organizational structure.
  • Existence of qualified staff: – Where there are qualified and experienced staff, managers are always willing to hand-over a greater proportion of their duties to others.
  • Centralized authority: – Centralized authority also encourages a wide organizational structure.  

 

6.   State three benefits of an employee’s suggestion scheme to a business organization.

Suggested Answer:   

  • Employees feel motivated since they are allowed to participate in the decision-making process.
  • It promotes good human relations and co-ordination among employees and management.
  • Workers are able to direct their problems to management for solution.
  • It generates good communication culture among workers, and also between subordinates and superiors.  

 

 

Business Management 2001 WASSCE-Past Questions and Answers- Paper 2

This section of the examination is made up of essay-type questions. That normally require you to mostly, state and explain your various points. As I have always said, it is better to first answer the questions on your own before referring to the answer from the drop-down symbol.

Let me show you how to find the answers to the Business Management Questions – Paper 2. When you read a question, just click on this symbol (˅) beside it, and the answer will drop down for you. It is a very simple task.

 

1.   Explain the following as sources of finance to a business organization:

 

  1. Leasing
  2. Hire purchase
  3. Mortgage
  4. Trade credit
  5. Debentures

Suggested Answer:   

  1. Leasing: – A lease occurs when an individual or organisation gives its property out to another person or organisation to be used for a definite period of time in return for money. The facilities that are leased are normally ideal. The funds generated from the lease is normally invested into the operations of the leasor.

  2. Hire Purchase: –  Under hire purchase, a business organisation buys an item, makes an initial payment, and pays the rest by instalments over a period of time. The instalment payments are made regularly, may be monthly or weekly until the total purchase price is paid. Though the product may be in the possession of the buyer, he/she can only the legal owner only after the last instalment has been paid.

  3. Mortgage: – A mortgage agreement is where a business borrows funds from a financial institution and pledges a property as a collateral security. In that case the lender can take possession of the property and sell it to offset the loan.

  4. Trade Credit: – . This involves the purchase of goods or services that is backed by a promise to pay at a future date. It is the most popular sources of finance for business organizations. It gives the debtor the opportunity to sell the goods or services, make some profit before paying for them. This source of finance is always dependent on the credit worthiness of the debtor.

  5. Debenture: – It may be defined as a written acknowledgement of a loan made to a company. It is a loan which is sold as an investment, at a stipulated interest and to be redeemed on a given date irrespective of whether the issuing company makes a profit or not. It is thus a term used to refer to a loan to a company. That is the document evidencing the loan.  

 

2.   Mention and explain any five barriers to effective communication.

Suggested Answer:   

Click here for the answer.  

 

3.   (a) What is delegation of authority?

Suggested Answer:   

Delegation is a practice where a superior gives a subordinate the authority and responsibility to perform a given task on his behalf, without giving an accountability. This means that a commensurate authority is given to the subordinate to perform the specified responsibility assigned to him. However, the superior/manager is still held responsible for the success or otherwise of the task performed by the subordinate. That is why we say that, managers transfer authority and responsibility but they do not transfer accountability.  

3.   (b) (i) Explain two reasons for delegation

Suggested Answer:   

  • Delegation saves executives time and allows them to concentrate on more difficult and strategic issues affecting the organisation.

  • It makes it possible for subordinates to be ‘groomed’ for promotion. The practice serves as training ground for subordinates.

  • It motivates subordinates because they are engaged in more difficult and challenging jobs which helps to involve them in decision making process of the organisation.

  • Delegation ensures effective utilization of the expertise of subordinates.

  • It facilitates management succession. That is managers who delegate will have competent managers ready to replace them when necessary.

  • Delegation is the key to organisational efficiency. It makes the organisation to function well since there are physical and mental limitations to the workload of any individual or group in authority, there is the need for delegation.  

 

3.   (b) (ii)            Explain two reasons for centralization of authority.

Suggested Answer:   

  • Centralization ensures faster decision-making because decisions are taken at the top without the need to refer them to the units or departments.
  • It is less expensive to operate because there is less duplication of personnel, machines, tools and other resources.
  • It is very easy to co-ordinate the activities of the various departments.
  • It involves few senior executives of the company and their skills and experience will lead to quality decisions.  

 

4.   (a) Explain four functions of money.

Suggested Answer:   

  • Medium of Exchange: – Medium of exchange means money enables people to exchange it for goods and services. This is the primary function of money. It is therefore a means of making payments. It follows that money has claim on goods and services so that once one has money he can exchange it for any commodity. The medium of exchange function facilitates the process of business transaction and eliminates the problem of double coincidence of wants under barter.
  • Store of Value: – Money is a handy way to store wealth since it is portable. With the help of money we are able to keep wealth for quite a long time without wastage or physical deterioration once it is durable. If one finds keeping or storing assets difficult, he only has to convert them into cash and store it. For money to function effectively as store of value, it must be stable in value. During inflation money becomes inefficient as a store of value since the value of money will decline.
  • A Unit of account or measure of value: – Money serves as a common denominator with which we measure the relative value of commodities. Money is the standard of measuring value. Money determines the rate of exchange between and among goods; which was a problem under barter. We are therefore able to compare goods by looking at their relative prices. By serving as a measure of value, money helps to calculate the value of goods and services and thus enables the total value of goods and services to be estimated.
  • A Standard for Deferred Payment: – With the introduction of money, it has become easy to buy goods and services today and pay for them later. Hence money makes it possible to conduct business on credit basis. Payment for goods and services can be transferred to a future date. e.g. Loans are granted to farmers and businessmen and repayment made later.  

4.   (b) Explain any two functions of the Bank of Ghana.

Suggested Answer:   

  • Banker to the government: – The Bank of Ghana keeps the accounts of the government and also makes payments on behalf of the government as well as receiving income on behalf of the government. The bank also sells bonds on behalf of the government. The central bank also manages the national debt and more importantly keeps the country’s gold reserves and deal with the central banks of other countries as well as world monetary institutions.

  • Banker to the banks: – The Bank of Ghana acts as a banker to the commercial banks by keeping accounts of the banks, making payments and receiving income on behalf of the banks as well as operating a clearing house for them. The clearinghouse system is a system whereby cheques drawn on various banks are sorted out and the difference paid. That is, it is a system where indebtedness between banks is settled. In short, by acting as a banker to the banks and other financial institutions the central bank offers the banks banking services similar to those that the commercial bank offers its
  • Issuance and withdrawal of currency notes: – The Bank of Ghana is the only bank charged with the responsibility of issuing the national currency and also withdrawing the worn-out ones. In other words, it is only the central bank, which has the legal right to issue or print notes, replaces them and also mints coins.

  • Lender of last Resort: – In its capacity as the lender of last resort the Bank of Ghana stands ready to lend to all recognized financial institutions. When all efforts to secure loans from other financial institutions have failed, it is the central bank that comes to the aid of commercial banks. If customers make excessive withdrawals from the commercial banks, the banks may run out of cash and thus will not have enough to pay their customers. They will therefore run quickly to the central bank to borrow money.
  • Controller and Regulator of Money Supply:- The Bank of Ghana responsible for controlling and monitoring the activities of commercial bank: and hence controls and regulates money supply in the country so as tt maintain economic stability in the country. It is able to do this through tht instruments of monetary control namely bank rate, open market operation cash ratio etc.

  • Adviser to the Government:- The Bank of Ghana advises the government on monetary and fiscal policies. By maintaining close contact with other central banks and monetary institutions in foreign countries, the central bank gains a lot of experience and hence advises the government both monetary and fiscal policies.

  • Transacting of international business on behalf of the government: –The Bank of Ghana does the external business on behalf of the government. These include import and export trade, loans, investments, payment of debts among others.

  • The Bank of Ghana also manages the national debt and more importantly keeps the country’s gold reserves pending international transaction.

  • It is also responsible for maintaining a country’s foreign exchange reserves. It also controls the movement of such reserves.  

 

5.   Describe any five duties of a secretary.

Suggested Answer:   

Duties of the Secretary include:

  • He/she prepares the notice and agenda for a meeting in consultation with the chairman and some members.
  • He/she sends out the agenda, notice and minutes of the previous meeting to all members.
  • He/she is responsible for arranging a venue for the meeting and also arranges accommodation for members coming form other places.
  • Responsible for taking down minutes during meetings.
  • Responsible for reading minutes of the previous meeting.
  • Ensures that all important documents needed at a meeting are available.  

 

6.   (a) Describe four ways in which an agency could be created.

Suggested Answer:   

Check the answer from here.  

6.   (b) Explain any two types of agents.

Suggested Answer:   

  • Factor: – A factor is also a mercantile agent who is employed to sell for a commission. He also has a claim/lien over the goods in his or her possession for any outstanding commission. A lien is a legal claim over property until the owners have settled any obligation connected with it. A factor takes possession of goods and sells them in his own name. The factor therefore acts its the principal since he transacts business on behalf of a principal in his or her own name.

  • Del Credere Agent: –  is an agent employed to sell goods who undertakes that third parties he comes into comes into contractual relationship with the principal will pay for any goods they take. He is liable for the debt of third parties should they fail to pay the principal. It is therefore in his own interest to introduce to his principal only credit worthy customers. For undertaking the risk of being held liable for non-payment of debts by customers, he receives an additional commission called del credere commission.

  • auctioneer: – An auctioneer is an agent who sells goods at a Public auction. He is licensed to sell by auction and to the person making the highest bid. An auctioneer has possession of the goods to be sold and a lien on it for remuneration and charges.  

 

7.   (a) Briefly explain the term insurance.

Suggested Answer:   

Insurance may be defined as the pooling’ of risks. A “pool” is a collection of money contributed by interested parties for a particular purpose. Insurance may also be defined as a system whereby one person (the insured) make payments to another person (insurance company) with the hope that should he (the insured) suffer any losses, the insurance company would offer him some amount of money as compensation. Insurance is therefore a precaution taken by business organizations against inevitable losses or misfortunes.  

7.   (b) Explain the following types of insurance policy.

Suggested Answer:   

  • Goods in transit:- This policy is normally taken to cover the movement of goods and services from one place to another. Movement of goods and services are associated with certain risks which sometimes lead to great losses. Businessmen take up this policy to cover goods which are in transit against damage and deterioration. This is common in marine insurance.
  • Employer’s liability: –  This insurance policy is taken by employers to cover them against risks during the course of employment. The accident sustained at work resulting from employer’s negligence is what this policy covers. Employers take up this policy as an indemnity against injuries or diseases that employees may suffer as a result of negligence on the part of the employer or other employees.
  • Burglary Insurance: –This covers loss or damage to personal property or business premises resulting from stealing.
  • Fidelity Guarantee: –  This protects an employer against loss resulting from fraud, dishonesty or other vice on the part of employees. It therefore covers employees like sales representatives, accountants, cashiers and other employees who are in sensitive positions. The policy cover a number of employees especially those who handle lump sum against specified risks.
  • Third party insurance: –  In this type of insurance a motorist is insured against liability resulting from the death or injury of another or damage to the property of another person. This type of insurance is compulsory and required by law for every motorist.  

 

8.   (a) What is meant by the term social responsibility of business.

Suggested Answer:   

It refers to what a firm should do in order to qualify as a good corporate citizen. In other words, is the obligation that a firm owes towards the society in which it exists or operates. Thus in its effort to achieve its objectives, the company must also consider protecting the people and their environment, creating employment, supporting education and community development.  

8.   (b) Describe five ways in which businesses can be socially responsible.

Suggested Answer:   

  • Providing employment: – It is a social responsibility for every business to offer employment to the people of the community in which it is located. This is because the business uses their resources, e.g. land.

  • Environmental Protection: – The firm must also show concern for environmental protection by using or adopting technologies that would enable it recycle waste products. Pollution of the air, streams and rivers must also be avoided.

  • Produce quality goods and services: – Firms must also produce quality goods and services and charge reasonable prices on them to the society. They must also provide a lot of information about the products relating to expiry dates and usage instructions.

  • Adherence to tax obligations: – A firm must honour its tax obligations. Since government depends on tax for revenue to finance its expenditure, firms must honour their tax obligations promptly. Thus, tax evasion and tax avoidance behaviours must be avoided.

  • Supporting education: – Firms are also socially obliged to support education especially in the community in the community in which they operate. This takes various forms, e.g. building of schools, providing scholarship to needy but brilliant students, providing means of transport, construction of libraries etc.  

 

9.   (a) Distinguish between product mix and product line.

Suggested Answer:   

Product mix is the set of all product lines and individual products that a firm sells. It is a range of products offered by an organization. It therefore refers to the different types of goods and services offered for sale by a company, e.g., GIHOC produces paint, footwear, drugs etc. The total combination of these products offered for sale by GIHOC constitutes product mix.

On the other hand, Product line is a set of individual products that are closely related. It refers to a brand of products that are related because they are produced or intended for similar uses or they have similar physical features or characteristics, e.g. slippers, sandals, shoes etc.  

9.   (b) Give four reasons why new products fail.

Suggested Answer:   

NB: Refer to 2000 (SC) Paper Two Question 4(b) for the suggested solution.  

 

10.   (a) Explain four factors which may influence an organization’s demand for employees

Suggested Answer:   

  • Nature of type of goods/services tb be produced.
  • Size of the organization.
  • Cost of maintaining employees (wages, salaries, incentives) etc.
  • Organization policy.  

 

10.   (b) State four benefits of human resource planning.

Suggested Answer:   

  • It enables the organization to cope with environmental changes including
    competition, market of products, technology and government regulations.
  • Human resource planning enables a company to determine the personnel needs of the organization and make provision for them.
  • It enables an organization to determine its future personnel needs.
  • It also provides essential information for designing and implementing personnel policies such as recruitment, selection, promotion, transfer, training and lay-offs.  

 

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