CSEC Principles of Business Paper 1 May/June 2003 - Free CXC Past Paper with Answers

Which of the following statements describe the functions of a business unit? I. Production of goods and services II. Creation of jobs III. Maximization of sales IV. Education of workers

Which of the following conditions operated under the barter system?

All households were self-sufficient

The rate of exchange was fixed

Goods were used as a means of exchange

Determining the value of an item was easy

Broad policies for Public and Private Companies in the Private Sector are formulated by the

In a public limited company the ordinary shareholders collect their dividends

before those holding preferred shares

before those holding debentures

after those holding deferred shares

after those holding preferred shares

A 'line relationship' in an organisation is one which

exists between a senior officer and his subordinate

is not connected by intermediary officers or other senior personnel

exists between the manager and is connected directly to his employees

involves only one superior officer

What is the BEST suggestion to a sole trader whose business is expanding too rapidly for him to control?

Purchase more cash registers.

Institute a self-service system.

Increase the stock available.

Set up departments with managers.

In a large organization if workers are dissatisfied about working conditions the trade union representatives' first action would be to

have discussions with the personnel officer

advise employees to adopt go slow tactics

plan for strike action

request a meeting with the board of directors

Which of the following methods can be used to improve the communication flow in an organisation? I. Suggestion schemes II. Films and film strips III. Staff members IV. Notice boards

I, II, III and IV only

Items 9 – 11 are based on the diagram below which shows a section of a typical vertical organisational chart for a manufacturing company. BOARD OF DIRECTORS (1) MANAGING DIRECTORS (2) GENERAL MANAGER (3) PRODUCTION MANAGER (4) MARKETING MANAGER (5) CHIEF ACCOUNTANT (6)

The relationship between the highest level of management down to the various departments is known as the

The managerial function performed at level 2 is BEST described as

The managerial function performed at level 3 is BEST described as

Which of the following statements describe the functions of management? I. Co-ordinating the work of employees II. Delegating work to subordinates III. Controlling employees and raw materials IV. Ensuring that employees join a trade union

Mr Gyma, the General Manager of Z Co. is always too busy to discuss problems with workers and to listen to suggestions from his employees. His leadership style can be described as being

Which of the following policies adopted by management is MOST LIKELY to ensure worker morale?

Employees should take part in decision-making on an ongoing basis since every employee has duties and responsibilities.

Supervisors should make decisions when they have been directed to do so by the general manager.

The general manager should make all the decisions because he is responsible for the performance of all employees.

Decisions made by the top manager and his advisers must be carried out by employees as directed to ensure that there will be no breakdown in work procedure.

Which of the following elements is NOT a requirement of a simple contract?

Which of the following situations would occur if a contract for the sale of goods becomes void?

I. The prospective buyer becomes the owner. II. The seller has the right to keep any money or goods which have been given to him in this transaction. III. The prospective buyer does not become the owner. IV. The seller must return any money or goods given to him by the prospective buyer for the transaction.

According to the law of contracts, a contract has NOT been effected until

there has been an exchange of money between the contractual parties

the acceptance of the offer has been made before witnesses

consideration has been made with respect to the contract

both parties have received copies of the contract document

Which of the following contracts MUST be evidenced in writing?

Purchase of a bus-ticket

Purchase of a lot of land

Purchase of a car for cash

Which of the following is NOT a natural resource of the Caribbean?

The money used for the day-to-day operations of a business is called

A switch to capital intensive methods of production in a country might, in the short run, result in

increased unemployment

reduced unemployment

Wealth set aside for the production of further wealth is termed

What is the MOST LIKELY effect on a developing economy when professional and skilled labour migrate to developed countries?

Unskilled labourers can demand higher wages.

The demand for skilled labour and professional services will decrease.

Unskilled labourers can work harder.

Production levels of goods and services will decrease.

The person responsible for bringing together and organising the factors of production is the

Which of the following LEAST affects the location of an extractive industry?

Proximity to sources of raw materials

Availability of an abundant labour supply

Proximity to large shopping areas

The presence of good roads and drainage

Which of the following are classified as primary industries? I. Farming II. Services (direct and commercial) III. Manufacturing IV. Mining

Which of the following are examples of extractive industries? I. Mining II. Refining III. Fishing IV. Agriculture

Which of the following is an example of an extractive type industry?

In the Caribbean, many people are hired for sugar-cane farming and very little equipment is used. This industry can BEST be described as

having low capital input

having high capital input

Which of the following activities are involved in the field of marketing? I. Sales promotion II. Public advertising III. Packaging and selling IV. Distribution and decisions

Which of the following documents gives the name of the ship and full particulars of the shipment of goods?

Which of the following is LEAST likely to be described as good public relations for a company?

The offering of scholarships

Reduction in price to retailers

Sponsorship of a steel band

Hosting of an annual sport event

Which of the following is a 'hire purchase agreement'?

An individual has a record player he plans to use at dances for a fee.

An individual contracts to rent a television for three years.

An individual pays a portion of the cost of an article, possesses it and continues to pay a stated sum at specific periods.

An individual buys an article, pays part of the cost, and gets the article when the final balance is paid.

A firm expands to achieve internal economies of scale because it wants to

increase costs of production

increase worker's wages

decrease the quantity of goods it produces

decrease its costs per unit

In which of the following types of trade can the hire purchase method of buying be used?

All persons can be called consumers because they

In which of the following situations would a credit note be sent to the buyer? I. The buyer is overcharged. II. The buyer is undercharged. III. Some of the goods are damaged. IV. Some of the goods are returned.

In which order in the marketing process would the following MOST likely occur?

I. Advertising II. Preparation of production III. Market research IV. Sales

Which of the following documents would have been used by a ship owner who agreed, for a sum of money, to provide a ship to carry a shipment of cargo from one port to another?

Which of the following documents would give title to goods?

I. A bill of sale II. A bill of materials III. A bill of lading IV. A bill of sight

The bank account which allows a customer to make payments by cheque is the

Which of the following refers to the type of insurance taken out by a firm specifically to cover it against theft by employees?

Fidelity bond insurance

Comprehensive cover insurance

Which of the following are MAJOR functions of a central bank?

I. Acting as the government's bank II. Keeping deposits of all commer- cial banks III. Giving loans to private individuals and companies IV. Helping to regulate the money sup- ply of a country

Which of the following CANNOT be used as collateral for obtaining a loan from a financial institution?

A mortgaged home with insurance coverage

An insurance policy with a cash value

An amount in a fixed deposit ac- count

Wife/husband's legally owned property not covered by insur- ance

Items 45-47 refer to the following forms of taxation a government uses to raise revenue:

Which of the above forms of taxation is imposed on goods produced in a country?

a refund on duty collected on goods imported into a country for manufacture and exported after manufacture?

a refund of taxes imposed on goods produced in a country but subsequently exported from it?

Which of the following is an example of indirect taxation?

Market equilibrium exists when

buyers pay reasonable prices for goods

sellers are satisfied with the price paid for their goods

at the ruling market price, buyers do not want to add to the stock of goods they already have

at current prices, the amount buyers wish to buy equals the amount sellers want to sell

When the demand for a commodity decreases and the supply increases the price should

The price of an article is usually high when there is a

large quantity for sale and few people wanting to buy

small quantity for sale and few people wanting to buy

small quantity for sale and many people wanting to buy

large quantity for sale and many people wanting to buy

Browne's store sells pencils at 15¢ each. White has opened a store about 200 metres away and sells the same brand of pencils at 12¢ each. What are the LIKELY effects on Browne's business?

I. Customers will decrease. II. Capital will decrease. III. General stock will increase. IV. Turnover will increase.

Which of the following situations is NOT a benefit of international trade?

A greater variety of goods is obtained from overseas.

Political links are developed with other countries.

Import restrictions can be imposed on foreign items.

Producers are able to increase their market size.

International trade owes its origin to

countries with large populations not having sufficient goods

the varying resources of different regions

the fact that countries desired to have greater contact with each other

the great need for foreign exchange by most countries

Which of the following practices would NOT contribute to the economic development and growth of a community?

Increased use of the country's natural resources

Increased importation of consumer goods

Provision of loans and technical assistance for establishing local businesses

Provision of more infrastructure within the country

A country can raise foreign exchange by ALL of the following EXCEPT

grants from foreign countries

Most English speaking Caribbean territories are members of ALL of the following organizations EXCEPT

Which of the following types of business environment is MOST typical of the Commonwealth Caribbean area?

Perfectly competitive

Which of the following trading agreements is Barbados promoting when it sells furniture to Jamaica?

Which of the following services are nationalised in MOST CARICOM territories?

I. Food production II. Water III. Communication IV. Electricity

CSEC Principles of Business Paper 1 May/June 2003 - Free CXC Past Paper with Answers

CSEC Principles of Business Paper 1 May/June 2003 Questions