WASSCE Past Questions and Answers for Business Management 2002 is a learning resource. This learning resource has been designed to help students to pass their exams in the above stated examining body. I believe you are imagining what our website can offer you? If so, then just wait and see. Read more.
Click on the links below to navigate to what you specifically want. You can always click on back arrow [←] to come back to the table of content here:
Table of Content
- General Overview
- The Nature of the Examination
- The Summary of the Paper
- Paper 1
- Paper 2
WASSCE Past Questions and Answers for Business Management 2002 is a learning resource. This learning resource has been designed to help students to pass their exams in the above stated examining body. I believe you are imagining what our website can offer you? If so, then just wait and see. Also, have you had challenges trying to learn, write or pass your WAEC BM paper? If the answer is yes, then I can assure you that educareguide is here to help and guide you.
We are here to encourage you that you can easily pass this subject. Firstly, we have a lot of links to assist you to get enough details. Truly, this will help you to gain enough knowledge and understanding to pass your examination. Secondly, we have materials on various topics, sub-topics relating to this subject area. Therefore, our site is very helpful to Senior High School Student across the West African sub-region. Notably, these countries are Nigeria, Ghana, Sierra Leone, The Gambia and Liberia. Moreover, these students rely on our guide and pass the WASSCE Business Management Examination. In detail, check the questions and the answers just below.
The Nature of the Examination
There are two Papers in the examination, (and these are Paper 1 and Paper 2). In detail, there are two sections in the Paper 1 (i.e. Section A and Section B). Section A is an Objective Test and Section B is a Case Study. 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. They are asked to tests the student’s general understanding of the various topics under business management.
The Summary of the Paper
The WASSCE Business management Paper for 2002 can summarized below:
- 2002 WASSCE Business Management Paper One – Section A;
- 2002 WASSCE Business Management Paper One – Section B;
- 2002 WASSCE Business Management Paper Two
Business Management 2002 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)
- The sequence of management functions begins with D is the answer -Business Management 2002 WASSCE
- Which of the following is the distinguishing feature between a public and a private joint stock company? D is the answer -Business Management 2002 WASSCE
- Separate ownership and control.
- Separate legal identity
- Limited liability
- Sale of shares to the public
- Which of the following gives details about a company’s history, profit record, future plans and share offer? C is the answer -Business Management 2002 WASSCE
- Articles of Association
- Memorandum of Association
- A company’s prospectus
- Certificate of Incorporation
- In which of the following business units does each member have one voting right irrespective of the number of shares held? D is the answer -Business Management 2002 WASSCE
- Limited partnerships
- Public corporations
- Limited liability companies
- Co-operative Societies
- When a business produces goods and services for the community at lower prices, it is fulfilling its B is the answer -Business Management 2002 WASSCE
- economic responsibility
- social responsibility
- legal responsibility
- cultural responsibility
- Which of the following functions would create an activity-authority network in an organization? C is the answer -Business Management 2002 WASSCE
- Planning begins with B is the answer -Business Management 2002 WASSCE
- an assessment of current conditions.
- a determination of goals and objectives.
- implementation of the action plan.
- controlling the implementation of the action plan.
- A senior manager transferring some of his duties to the immediate subordinate is B is the answer -Business Management 2002 WASSCE
- abandoning responsibility
- delegating authority
- extending span of control
- forecasting future events
- The process of selecting a particular course of action from among several alternatives for the attainment of desired objectives is A is the answer -Business Management 2002 WASSCE
- Decision making
- Authority relationship
- The first step in decision making is A is the answer -Business Management 2002 WASSCE
- problem identification
- gathering information
- establishing objectives
- developing alternative solutions
- Which type of decision making takes place when managers have the requisite information to create rules that will guide decision making? A is the answer -Business Management 2002 WASSCE
- Programmed decisions
- Strategic decisions
- Non-programmed decisions
- Non-routine decisions
- Which of the following is not a function performed by the office? D is the answer -Business Management 2002 WASSCE
- Collection of information
- Classification of information
- Recording information
- Provision of equipment
- The sales department of a business organization is responsible for all the following except C is the answer -Business Management 2002 WASSCE
- receiving orders from customers
- keeping sales records
- negotiating with suppliers
- sale of goods
- Which department in a business organization is responsible for the health and safety needs of workers? D is the answer -Business Management 2002 WASSCE
- Legal department
- Production department
- Administration department
- Personnel department
- The principal functions of an Office Manager include A is the answer -Business Management 2002 WASSCE
- supervising filing and indexing.
- training and educating employees
- recruiting staff.
- ensuring health and safety
- In which of the following situations can one send a memorandum? A is the answer -Business Management 2002 WASSCE
- When a manager is writing to another manager in the organization
- When a purchasing manager is enquiring about items from suppliers
- When a secretary is replying to a complaint received from a regular customer
- When a personnel manager is inviting applicants for an interview
- Why do organizations that deal with a large volume of documents prefer storing them on microfilm? They A is the answer -Business Management 2002 WASSCE
- take less space.
- prevent unauthorized people from accessing them.
- protect documents from being mutilated.
- can be retrieved through a reader
- Which of the following refers to the permanent storage of files? D is the answer -Business Management 2002 WASSCE
- Which of the following will give detailed information about management guidelines to employees in an organizing? C is the answer -Business Management 2002 WASSCE
- Organization structure
- Organization chart
- Office manual
- Certificate of incorporation
- The diagrammatic representation of lines of authority and responsibility of an organization is referred to as C is the answer -Business Management 2002 WASSCE
- organization and methods
- business organization
- organization chart
- personnel chart
- The management function of initiating action, issuing directives, giving assignments and instruction is A is the answer -Business Management 2002 WASSCE
- When a manager gives part of his job to a subordinate, the manager is said to be C is the answer -Business Management 2002 WASSCE
- giving instructions
- providing incentives
- delegating authority
- carrying out training
- Policies and procedures issued by the top management of a business organization are a form of B is the answer -Business Management 2002 WASSCE
- vertical upward communication
- vertical downward communication
- horizontal communication
- diagonal communication
- Which of the following confirms that communication has been effective? B is the answer -Business Management 2002 WASSCE
- Semantic block
- The use of suggestion boxes is a form of B is the answer -Business Management 2002 WASSCE
- downward communication
- upward communication
- horizontal communication
- diagonal communication
Use the information below to answer Questions 26, 27 and 28
A Mercedes Benz salon car and a BMW salon car were put on sale at a public auction. When the auctioneer invited bids for the BMW car, Kofi bid the highest price because he thought the bids were for the Mercedes Benz car. When the BMW was offered to Kofi, he refused acceptance.
- By bidding, Kofi made B is the answer -Business Management 2002 WASSCE
- an offer
- an acceptance
- an invitation to treat
- a partial acceptance
- By offering the BMW car to Kofi, the auctioneer was making B is the answer -Business Management 2002 WASSCE
- a public offer
- an invitation to treat
- an acceptance
- a partial acceptance
- Which of the following elements of a valid contract was breached in the above scenario? A is the answer -Business Management 2002 WASSCE
- When an act performed by an agent for his principal is reasonably necessary to carry out an express authority, an agency by D is the answer -Business Management 2002 WASSCE
- appointment is created
- implication is created
- express agreement is created
- ratification is created
- When the parties to a contract fail to achieve mutual consensus, the contract is rendered B is the answer -Business Management 2002 WASSCE
- The party creating a bill of exchange C is the answer -Business Management 2002 WASSCE
- promises to pay money to another party
- promises to pay money to an unspecified payee
- orders another party to pay money to a third party
- pleads with the drawee to promise to pay an unspecified amount
- Import and excise duties imposed on consumer goods and services are examples of A is the answer -Business Management 2002 WASSCE
- indirect tax.
- direct tax.
- profit tax.
- Which of the following qualities of money makes it possible to detect counterfeit currency notes? C is the answer -Business Management 2002 WASSCE
- Which of the following instruments of monetary policy does the central bank adopt in selling or buying treasury bills? C is the answer -Business Management 2002 WASSCE
- Bank rate policy
- Cash reserve ratio
- market operations
- Special directives
- Pay-As -You-Earn (PAYE) is a form of taxation applicable to D is the answer -Business Management 2002 WASSCE
- value-added tax
- Osei insured his Volvo car against fire but the car was stolen at the sports stadium. On which of the following principles will the insurers refuse to pay indemnity to Mr. Osei? B is the answer -Business Management 2002 WASSCE
- Proximate cause
- Insurable Interest
- Which of the following is an uninsurable risk? Risk arising from D is the answer -Business Management 2002 WASSCE
- motor accident
- employee dishonesty
- air travel
- business competition
- Raw data to be processed in a computer are known as B is the answer -Business Management 2002 WASSCE
- The programs which tell the computer what to do are known as D is the answer -Business Management 2002 WASSCE
- Unorganized facts, figures and ideas are described as A is the answer -Business Management 2002 WASSCE
- Which of the following are not internal sources of recruitment? A is the answer -Business Management 2002 WASSCE
- First-time applicants
- Current employees
- The qualifications required for a job are usually contained in the job B is the answer -Business Management 2002 WASSCE
- Any action intended to correct wrong behaviour and train an individual to perform correctly is known as B is the answer -Business Management 2002 WASSCE
44. Training employees, promoting them and appraising their performance are activities related to
- In certain situations, it is necessary to divide the total customers for a product into distinct groups. This process is called C is the answer -Business Management 2002 WASSCE
- market research
- marketing mix
- market segmentation
- market development
- The purpose of penetration pricing is to C is the answer -Business Management 2002 WASSCE
- take advantage of consumer desire for new products.
- set price in line with competitors.
- enable a firm to gain a foothold in the market.
- set price according to what consumers are prepared to pay.
- Goods deliberately sold at little or no profit to attract customers are called C is the answer -Business Management 2002 WASSCE
- specialty goods
- special price goods
- loss leaders
- impulse purchases
- Prestige pricing reflects consumer perceptions of the relationship between price and D is the answer -Business Management 2002 WASSCE
- Small businesses still flourish in spite of the dominance of large firms because they C is the answer -Business Management 2002 WASSCE
- can raise more capital niche
- resist innovation and change
- serve a special market
- employ few people
- Which of the following objectives will be emphasized by a new small-scale enterprise? A is the answer -Business Management 2002 WASSCE
- Manpower development
- Social responsibility
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.
Business Management 2002 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.
Read the following case and answer the questions that follow
TROPICAL VENTURES LIMITED
Tropical Ventures Ltd. is a major fruit drink producer in West Africa. It started operations about twelve years ago.
The company produces very popular brands of fruit drink distributed through its own outlets located throughout West Africa. These distribution outlets sell only the brands of fruit drink produced by Tropical Ventures Ltd.
Aggressive advertising is the main competing strategy of Tropical Ventures ltd. Last year alone, the company spent over $500,000 on advertising its products. Through attractive packaging, the company has succeeded in differentiating its products from those of its competitors. Tropical Venture Ltd. is therefore able to sell its products at a premium without losing customers.
Last year, total sales of the fruit drink industry was $20 million. Tropical Ventures Ltd. alone accounted for 60% of this amount. For next year, the total sales of the industry is projected to grow by 50%. According to the Marketing Manager of Tropical Ventures Ltd. the company plans to increase its contribution to industry-wide sales to 70%.
The management of Tropical Ventures Ltd. Has however identified a major threat in their operating environment which could prevent them from achieving their sales target for next year. A new company Bexco Ltd. has started operating in the fruit drink industry. Bexco Ltd. does not sell its brands of fruit drink through its own distribution outlets. It uses existing supermarkets. The supermarkets engage in their own advertising and distribution of products. Bexco Ltd. is therefore able to sell its brands at far lower prices.
1. (a) State any four methods used by Tropical Ventures Ltd. to compete in the fruit drink industry.
- Aggressive advertising
- Attractive packaging, branding and product differentiation
- Using its own or exclusive channels or outlets to distribute its products
- Premium pricing/higher pricing
- Franchising/tied shops.
1. (b) Sate four functions of channels of distribution in Marketing.
- Breaking bulk
- Storage / warehousing
- Provision of information
- Branding, grading and packaging
- Risk bearing
- After sales services
1. (c) Explain the strategies used by Bexco Ltd. to penetrate the fruit drink market.
- Using existing supermarkets which undertake their own advertising and distribution of products.
- Lower pricing/penetration pricing.
1. (d) Compute the estimated amount of sales Tropical Ventures Ltd. has to make to capture 70% of the total sales of the industry next year.
Total Industry Sales: 20,000,000.00
Next Year’s industry projection 50% of 20,000,000.00
Total Projected Sales: 20,000,000+10,000,000
Tropical Ventures Shares: 70% of 30,000,000
Business Management 2002 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. (a) Explain the following:
- Preference Shares
- Ordinary Shares
Preference Shares: – A preference share represents a fractional part of the ownership/share capital of a company. A preference share also enjoys two privileges, (a) priority in dividend payment over other shares and (b) priority regarding capital in the event of liquidation. Cumulative preference shares have their dividends carried forward while dividends for non-cumulative shares lapse in years where no dividends are declared. Preference shares have a fixed rate of dividend.
Ordinary Shares: – These are also fractional parts of the ownership/capital of a company. All shares other than preference shares are ordinary shares. This type of share bears the highest risk. Where there are preference shares, ordinary shares are entitled to the residual profits, after the preference share dividends are paid. In the event of liquidation, ordinary shares have the last claim on the net assets of a company. Ordinary shares give its holders the right to vote.
Debentures: – This is a certificate and evidence of a loan to a company. A holder of a debenture has given a loan to a company, and is therefore a creditor of a company. The holder receives interest on the debenture.
- Shares: – These are fractional parts of the share capital and show ownership interest in a company. A person to whom such share certificates are issued is called a shareholder. All shares purchased collectively constitute the share capital of a company. A share may be of two types – preference share or ordinary share. Shares receive dividends.
1. (b) State the business units that cannot invite the public to subscribe for shares.
- Sole proprietorships
- Private companies
- Co-operative societies
2. (a) What four benefit swill an organization derive from having an organization chart?
An organizational chart is a diagram of an organization’s structure showing the functions, departments and positions in an organization and how they are interrelated.
The benefits of the chart include: –
- It shows the line of authority and responsibility. It indicates to each person who are his immediate superiors as well as those who are accountable to him.
- It shows the direction of communication flow or the official line of communication of an organization. It thus shows to-down, bottom-up, horizontal as well as formal and informal communication flows.
- It clearly defines responsibility. It details the position of each person and a person can therefore see at a glance what position he occupies in the organization, i.e., he knows whom he is responsible to and who is responsible to him.
- It also shows the various departments and units within the organization and how these departments and units combine the co-ordinate their efforts to produce the desired results.
- It provides a pictorial view of the organization at a glance.
2. (b) Explain with examples:
- line relationship
- functional relationship
- Line Relationship: – in a line relationship, authority and responsibility flow is a direct line from top to bottom. In line relationship, authority is greatest at the top and reduces at each successive level down the organizational ladder. That is, instructions and orders flow from top executives to the lower level executive and finally to the operatives (rank and file). In a manufacturing firm, the production manager will have a line relationship with is subordinates.
- Functional Relationship: – A staff function is one that complements/supports the main chain of command. Staff managers provide advice to the line managers and do not have direct authority over the operatives. Accountants, Personnel Managers, Sales Managers and the like are staff positions in a manufacturing firm. Each functional manager seeks advice from the other.
2. (c) Distinguish between a flat organization chart and a tall organization chart.
A flat organization chart is characterized by an overall broad but shorter span of control and a relatively few hierarchical levels or few levels of authority. It also has a shorter channel of communication, shorter chain of command and many functional managers.
On the other hand, a tall organization chart on the other hand, is characterized by an overall narrow but longer span of control and a relatively large number of hierarchical levels or numerous levels of authority and management. It has a longer channel of communication, longer chain of command and fewer functional managers.
3. (a) Describe five ways in which a private company is different from a public company.
- Whiles membership of a public company ranges from seven (7) to infinite, the membership of a private company ranges from two (2) to fifty (50) in most cases.
- Public company can float shares on the stock exchange market but a private company is not allowed to have any dealings on the stock exchange.
- Private companies can transfer shares only with the consent of existing shareholders whiles public companies can transfer shares without the consent of existing shareholders.
- While a public company is required by law to file its annual accounts with the Registrar-General’s Department, that is not required of the private company.
- A private company may be run by one director whiles a public company must have at least two directors.
3. (b) State five sources of finance for a public company.
- Retained Profits
- Sale and Lease back
- Hire Purchase
4. (a) State four uses of an office diary.
- As a reminder
- To check dates
- To book appointments
- To take note of actions to be taken on a future date
- To check or indicate important telephone numbers
- To follow an itinerary
4. (b) State and explain five duties of a receptionist.
- Receiving and directing visitors. The receptionist is responsible for receiving all visitors to the organization. He/she answers their initial queries and directs them as appropriate.
- Receiving calls: All telephone calls to the organization are often received first by the receptionist who directs them as appropriate.
- Giving information: He/she gives routine information about the organization and gives out brochures.
- PRO duties: The receptionist is the first person to answer preliminary questions on the organization
- Message receiver: She is the one who receives messages for officers who are not at post at the time of the call or when a visitor arrives.
- Prepares receptionist register.
4. (c) State the information obtainable from each of the following:
- Roget’s Thesaurus
- White Paper
- Hansard: – A verbatim report of proceedings in parliament.
- Roget’s Thesaurus: – A book of synonyms and antonyms
- White Paper: – this is a government’s directives/decisions/views on the report of a commission of enquiry/matters of public concern.
5. (a) What is planning?
Planning involves setting objectives and showing how these objectives can be achieved. It is defined as deciding in advance what to do, how to do it, when to do it, and by whom it is to be done with the view to achieving the firm’s objectives. It also involves stating the objectives of a company, formulating rules, regulations and policies to guide performance and mapping out strategies to be used in achieving them.
5. (b) List four types of plans.
- Long-term plans
- Medium-term plans
- Short-term plans
- Strategic plans
- Tactical plans
- Operational plans
5. (c) Explain four benefits firms derive from planning.
- It provides the basis from which all activities of the various departments of an organization are coordinated towards one direction. That is, towards organizational objectives.
- Planning enables organizations to clearly define their goals and objectives and also determine the methods to follow to achieve these goals and objectives.
- Planning enables both management and staff to see clearly and appreciate the ultimate goal of the organization and the part each has to play to achieve this.
- It brings to light all major problems/constraints likely to confront the organization in future and how best to overcome these obstacles.
6. (a) Explain the functions of the central processing unit of a computer and its components.
The central processing unit consists of the control unit, the arithmetic or logical unit and the memory unit.
It serves as the “brain” of the computer. It interprets and executes or causes some other parts to execute instructions and direct the movement of data. It is also called the coordinator because it regulates and co-ordinates all activities and controls all programmes.
It processes raw data into information and also calculates, analyses and sorts data into required form. It therefore performs logical functions.
It serves as the storage section of the computer. It therefore holds the instructions and data during processing. Random. Access Memory is used to store data temporarily and data can be lost if there is power failure. Read Only Memory stores all the computer programmes/instructions.
6. (b) List eight uses of computers in a business organization.
- Order processing
- Personnel record keeping
- Word processing
- Banking services
- Insurance services
- Office automation
- Health service
- Stock control
- Production control
- Arts and entertainment
- Science and research
7. State and explain five essential elements of a valid contract.
8. (a) Mention five fringe benefits employers can offer to their employees.
- Leave with pay
- Sick leave
- Housing/housing allowance
- Car loan/maintenance/fuel allowance
- Rent loan
- Retirement/end of service benefits
8. (b) Explain the following:
- Job rotation
- Job enlargement
- Job enrichment
- Job Rotation: – It is a job design that systematically moves employees from one job to another, thereby increasing the number of different tasks an employee performs without increasing the complexity of anyone job, e.g., a mechanic may install windshields for a week and front bumpers the next. In short, it is the process of assigning employees to different tasks or jobs on a temporary basis.
- Job Enlargement: – This involves giving workers a number of tasks to perform rather than just one simple task to increase job enrichment. It is commonly used in mass production environments. Or it is a job design that combines a series of tasks into one new, broader job to give employees variety and challenge. It therefore involves giving the worker more tasks of a similar nature to perform. It increases the number and kinds of activities performed by a single worker, making the job more interesting.
- Job Enrichment: – it involves giving individuals more responsibilities and recognition for their own work. The employee has more say in planning his or her work and deciding how it is to be done. This is “participation” in the sense that the employee is given greater discretion over immediate work decisions. It adds to employee motivation by increasing responsibilities and job interest.
9. (a) What is organization structure?
9. (b) Explain four ways in which organization structure is important.
10. (a) What is advertising?
Advertising may be defined as any paid form of non-personal presentation and promotion of ideas, goods and services by an identifiable sponsor. It is thus a selling strategy used to inform, persuade, educate and remind existing and potential consumers to buy a particular product. It includes the use of such media as magazines, newspapers, radio, television etc. Advertising therefore involves all the techniques/methods used by a business to transfer information, ideas, feelings, attitudes and information about its products/services to buyers with the view to influencing their attitude and behaviour towards the products or services.
10. (b) Give four reasons why organizations advertise their products and services.
- To inform existing/potential consumers about the existence of a product/service.
- To persuade consumers to buy a particular product or service rather than others.
- To influence consumers’ attitude favourably towards the product/service.
- To educate consumers about the uses of the product.
- To remind consumers about the existence of the product/service
I’m happy that you now have everything you need with respect to Business Management 2002 WASSCE-Past Questions and Answers-WAEC. I believe we at educareguide have been of a help to you. We know you will excel in your examination. We are so glad to be part of your dreams. In case you need any personal help or you want to make any contribution or suggestion, our contacts are below. We will welcome such suggestions as necessary as possible to the best of our abilities. For easy access to our page all the time, please, bookmark our website. Thank you very much