1. Which of the following documents is required before starting business for a Sole-proprietor? A. Memorandum of Association B. Article of Association C. Statement of Compliance D. Certificate of Incorporation E. Business Registration Certificate 2. Which of the following statement is INCORRECT? A. A smart sales person who understands customers very well is essential for sales promotion B. Public relation is a way of corporate social responsibilities to community. C. An original painting by a famous contemporary artist is most suitable selling in an Art Gallery D. Reference pricing has little effect on an original painting by a famous contemporary artist. E. Labelling is a way of corporate social responsibilities to customers. 3. GreatJob Company planned to cut the HR budget by reducing the number of staffs. The HR manager decided to stop hiring new employees and just wait the current employees to quit. This approach is called A. Early retirement B. Firing C. Layoffs D. Attrition E. Downsizing 4. Which of the following statement is CORRECT? A. Amounts owed to suppliers is an asset. B. Loan to ABC Ltd is a liability. C. Liabilities is the amount supplied by people other than owners. D. Assets is the difference between Liabilities and Equity. E. Equity is the resources of the company. 5. What is the primary reason that so many new businesses fail? A. Owner does not work hard enough. B. Mismanagement resulting from lack of business knowledge. C. Low quality employee to serve customers. D. Lack of good brand names. E. Insufficient funds from owners. 2