BUSA Exam questions with guaranteed answers
20252026
1. Which of the following is a primary function of management?
A. Planning
B. Marketing
C. Organizing
D. Recruiting
Correct answer: A and C
Rationale: Planning and organizing are core functions of management; recruiting
is part of staffing, and marketing is a business function but not a primary
management function.
2. SWOT analysis is used to identify:
A. Strengths
B. Weaknesses
C. Opportunities
D. Threats
Correct answer: A, B, C, and D
Rationale: SWOT stands for Strengths, Weaknesses, Opportunities, and Threats,
helping organizations assess internal and external factors.
3. Which of the following is considered a leadership style?
A. Autocratic
B. Democratic
C. Laissez-faire
D. Transactional
Correct answer: A, B, C, and D
Rationale: These are widely recognized leadership styles applied in organizational
behavior and management.
4. The process of dividing work into specific tasks is called:
A. Delegation
B. Specialization
,C. Coordination
D. Motivation
Correct answer: B
Rationale: Specialization involves dividing work into specific tasks to improve
efficiency.
5. In the business environment, PESTLE analysis stands for:
A. Political, Economic, Social, Technological, Legal, Environmental
B. People, Economy, Strategy, Technology, Leadership, Ethics
C. Planning, Execution, Strategy, Tactics, Leadership, Evaluation
D. Production, Economics, Sales, Technology, Logistics, Efficiency
Correct answer: A
Rationale: PESTLE analysis is a strategic tool to assess macro-environmental
factors affecting businesses.
6. Which of the following are types of business ownership?
A. Sole proprietorship
B. Partnership
C. Corporation
D. Cooperative
Correct answer: A, B, C, and D
Rationale: These are common forms of business ownership, each with distinct
legal and operational characteristics.
7. The “Four Ps” of marketing include:
A. Product
B. Price
C. Place
D. Promotion
Correct answer: A, B, C, and D
Rationale: The marketing mix consists of Product, Price, Place, and Promotion to
effectively market goods/services.
8. Which of the following is an internal source of business finance?
A. Retained earnings
, B. Share capital
C. Bank loan
D. Trade credit
Correct answer: A and B
Rationale: Retained earnings and share capital are raised internally, whereas bank
loans and trade credit are external sources.
9. A business’s break-even point is the point where:
A. Total revenue equals total cost
B. Profit is maximized
C. Losses are minimized
D. Sales are at their highest
Correct answer: A
Rationale: Break-even analysis identifies the point at which total revenue equals
total cost, resulting in neither profit nor loss.
10. Corporate social responsibility (CSR) involves:
A. Environmental protection
B. Ethical business practices
C. Community development
D. Employee welfare
Correct answer: A, B, C, and D
Rationale: CSR refers to a company’s responsibility to operate ethically, contribute
to social welfare, and minimize environmental harm.
11. Which of the following is a characteristic of an entrepreneur?
A. Risk-taking
B. Innovation
C. Procrastination
D. Leadership
Correct answer: A, B, and D
Rationale: Entrepreneurs are known for taking risks, innovating, and
demonstrating leadership. Procrastination is not a positive entrepreneurial trait.
20252026
1. Which of the following is a primary function of management?
A. Planning
B. Marketing
C. Organizing
D. Recruiting
Correct answer: A and C
Rationale: Planning and organizing are core functions of management; recruiting
is part of staffing, and marketing is a business function but not a primary
management function.
2. SWOT analysis is used to identify:
A. Strengths
B. Weaknesses
C. Opportunities
D. Threats
Correct answer: A, B, C, and D
Rationale: SWOT stands for Strengths, Weaknesses, Opportunities, and Threats,
helping organizations assess internal and external factors.
3. Which of the following is considered a leadership style?
A. Autocratic
B. Democratic
C. Laissez-faire
D. Transactional
Correct answer: A, B, C, and D
Rationale: These are widely recognized leadership styles applied in organizational
behavior and management.
4. The process of dividing work into specific tasks is called:
A. Delegation
B. Specialization
,C. Coordination
D. Motivation
Correct answer: B
Rationale: Specialization involves dividing work into specific tasks to improve
efficiency.
5. In the business environment, PESTLE analysis stands for:
A. Political, Economic, Social, Technological, Legal, Environmental
B. People, Economy, Strategy, Technology, Leadership, Ethics
C. Planning, Execution, Strategy, Tactics, Leadership, Evaluation
D. Production, Economics, Sales, Technology, Logistics, Efficiency
Correct answer: A
Rationale: PESTLE analysis is a strategic tool to assess macro-environmental
factors affecting businesses.
6. Which of the following are types of business ownership?
A. Sole proprietorship
B. Partnership
C. Corporation
D. Cooperative
Correct answer: A, B, C, and D
Rationale: These are common forms of business ownership, each with distinct
legal and operational characteristics.
7. The “Four Ps” of marketing include:
A. Product
B. Price
C. Place
D. Promotion
Correct answer: A, B, C, and D
Rationale: The marketing mix consists of Product, Price, Place, and Promotion to
effectively market goods/services.
8. Which of the following is an internal source of business finance?
A. Retained earnings
, B. Share capital
C. Bank loan
D. Trade credit
Correct answer: A and B
Rationale: Retained earnings and share capital are raised internally, whereas bank
loans and trade credit are external sources.
9. A business’s break-even point is the point where:
A. Total revenue equals total cost
B. Profit is maximized
C. Losses are minimized
D. Sales are at their highest
Correct answer: A
Rationale: Break-even analysis identifies the point at which total revenue equals
total cost, resulting in neither profit nor loss.
10. Corporate social responsibility (CSR) involves:
A. Environmental protection
B. Ethical business practices
C. Community development
D. Employee welfare
Correct answer: A, B, C, and D
Rationale: CSR refers to a company’s responsibility to operate ethically, contribute
to social welfare, and minimize environmental harm.
11. Which of the following is a characteristic of an entrepreneur?
A. Risk-taking
B. Innovation
C. Procrastination
D. Leadership
Correct answer: A, B, and D
Rationale: Entrepreneurs are known for taking risks, innovating, and
demonstrating leadership. Procrastination is not a positive entrepreneurial trait.
