Business Studies (MCQ) Multiple Choice Examination Questions

Practice Makes Perfect! These 20 multiple-choice questions are specially designed to help Papua New Guinea students prepare effectively for their Business Studies National Examinations. By answering these questions, you'll strengthen your understanding of key business concepts such as budgeting, taxation, entrepreneurship, marketing, and economic systems. This interactive quiz mirrors the style and topics often found in the national exams and will boost your confidence as you revise. Take your time, think critically, and use this opportunity to test your knowledge and sharpen your exam skills.

How to take the questions 

•  Select the options by clicking on the radio button 
•  Click on VIEW MY SCORE button at the end of the questions to view your results.
•  If you made mistake (s), you can try answer them again. All the best

QUESTIONS

1. What is the role of the Internal Revenue Commission (IRC) in Papua New Guinea?

A. Manage foreign trade
B. Collect taxes and enforce tax laws
C. Issue business licenses
D. Provide microloans

2. Which type of business ownership is most suitable for a small family-run trade store in PNG?

A. Sole trader
B. Public company
C. Franchise
D. Cooperative society

3. Which of the following is a characteristic of informal businesses in PNG?

A. Registered and taxed
B. Employs hundreds
C. Operates without licenses
D. Listed on the stock market

4. What is a budget?

A. A financial plan for income and expenses
B. A list of debts
C. A business license
D. A tax invoice

5. What does GST stand for in Papua New Guinea?

A. Gross State Tax
B. Goods and Services Transfer
C. General Supply Tariff
D. Goods and Services Tax

6. What is the main purpose of a business plan?

A. To avoid paying tax
B. To guide and manage business activities
C. To attract more employees
D. To register a business

7. Which government department is responsible for business registration in PNG?

A. Department of Labour
B. Internal Revenue Commission
C. Investment Promotion Authority
D. PNG Customs

8. In marketing, what is meant by the “4Ps”?

A. Product, Price, Place, Promotion
B. Price, Process, People, Property
C. People, Products, Planning, Policy
D. Packaging, Pricing, Printing, Promotion

9. Which of the following is a disadvantage of a partnership?

A. Shared workload
B. More capital
C. Disagreements among partners
D. Simple to register

10. What is meant by "imports"?

A. Goods brought into the country
B. Locally produced goods
C. Goods stored in warehouses
D. Goods sold to local markets

11. What is one major cause of inflation in PNG?

A. Increase in exports
B. Increase in prices of goods and services
C. Decrease in employment
D. Fall in government spending

12. What is an entrepreneur?

A. A government tax collector
B. A bank officer
C. A person who starts and runs a business
D. A shareholder

13. What is bookkeeping?

A. Writing stories about businesses
B. Keeping tax records only
C. Designing websites
D. Recording daily financial transactions

14. Why do businesses advertise?

A. To inform and attract customers
B. To pay less tax
C. To get government subsidies
D. To reduce employee salaries

15. What is a liability?

A. A type of income
B. A business debt or obligation
C. A business profit
D. A customer discount

16. What does “profit” mean in business?

A. Total amount of sales
B. Total stock in store
C. Revenue minus expenses
D. Cost of goods sold

17. What is the benefit of saving money in a commercial bank?

A. Safety and earning interest
B. High transaction fees
C. No records kept
D. No access to funds

18. What is the role of PNG Customs?

A. Monitor domestic markets
B. Provide tax refunds
C. Control imports and exports
D. Print money

19. What is a cheque?

A. A type of tax
B. A loan agreement
C. A government license
D. A written order to a bank to pay money

20. Which of the following is an example of a service business?

A. Coffee plantation
B. Barber shop
C. Hardware store
D. Poultry farm

Economics Examinations MCQ Multiple Choice Questions