Free CXC Principles of Business Paper 1 May/June 2004 past paper from 2004. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
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CSEC Principles of Business Paper 1 May/June 2004 - Free CXC Past Paper with Answers
Free CXC Principles of Business Paper 1 May/June 2004 past paper from 2004. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
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Every question from this paper as text. See the answers and worked solutions. Questions are the property of the Caribbean Examinations Council; Caribbean AI is not affiliated with CXC.
One of the following is NOT a function of money:
Measure of value
Medium of exchange
Indivisibility
Store of value
Which of the following are the functions of a business unit? I. Production of goods and services II. Creation of jobs III. Maximization of sales IV. Education of workers
I, II and III only
I, II and IV only
I, III and IV only
II, III and IV only
Which of the following types of business environment is most typical of the Commonwealth Caribbean area?
Corporate state
Mixed economy
Centrally planned
Perfectly competitive
A system involving the exchange of goods depending on the 'double coincidence of wants' is known as
money
barter
specialization
equal exchange
Private enterprise is run MAINLY to
create profit
reduce inflation
distribute goods and services fairly
provide jobs for more people
John works in a bakery where he makes all the decisions and takes all the profits. What category of business is he working in?
Soletrader
Partnership
Co-operative
Joint Stock Company
The MAIN purpose of installing a suggestion box in a company is to get workers' views about
other companies
each other
ways of improving the workplace
ways of improving economic conditions
In a firm with a departmentalized structure, which department performs the four duties listed below? I. Receiving the goods purchased II. Giving a report on the quality of goods received III. Applying the principles involved in costing goods IV. Keeping an inventory
Finance
Purchasing
Stock control
Marketing
MIS stands for
Management Induction Systems
Management Information Systems
Manufacturing Indication Systems
Manufacturing Instructional Systems
Which of the following is NOT a responsibility of management to employees?
Providing adequate working facilities
Producing goods at reasonable prices
Maintaining good communication
Providing training
The manager of ABC company has embarked upon sponsoring a school cricket team in a Caribbean territory. Which responsibility is the company fulfilling?
Its obligation to maximise surpluses
Its obligation to customers
Its economic obligation
Its social obligation
"The leader deliberately stands back and lets the subordinates plan their own work and make their own decisions as far as possible." Which word BEST describes the type of administration referred to in the above statement?
Participative
Laissez-Faire
Democratic
Authoritarian
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 break down in work procedure.
The MAIN function of the trade union is to
prevent workers from being dismissed
increase union leaders' popularity
protect workers' rights
train workers to be leaders
Which of the following describes an essential feature of a valid contract?
The offer has been communicated to the offeree.
A counter offer has been made by the offeree to the offeror.
The offer is made in writing by the offeror.
The offer has been accepted by the offeree either in writing or orally.
In a recent conversation Ann asked Betty the price at which she would sell a book. Betty replied that she would sell it for $5.00. The conversation constituted
a contract between the parties
an offer from Betty to sell the book for $5.00 to Ann
the sale of the book $5.00
an enquiry and statement of the sell-ing price of the book
Felix Ward was offering his car for sale at $15 000. His friend, Frank Moore, stated that he wanted the car and would pay $12000.
This situation describes a
contract
statement of intention
counter-offer
misrepresentation
The money used for the day-to-day opera-tions of a business is called
fixed capital
nominal capital
floating capital
working capital
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 serv-ices will decrease.
Which of the following is a fixed asset for a business?
Bicycle for private use
Washing machine for resale
Motor car for family use
Motor lorry for delivery of goods
Which of the following are examples of service industries?
Agriculture and construction
Banking and tourism
Manufacturing and fishing
Mining and transportation
Primary production is concerned with the
distribution of goods
providing goods to meet essential needs
provision of raw materials
manufacture of goods
Which of the following are classified as primary industries?
I. Farming II. Services (direct and commercial) III. Manufacturing IV. Mining
I and II only
I and IV only
II and IV only
I, II, III and IV
Which of the following is an example of extractive production?
Agriculture
Communication
Manufacturing
Tourism
Which of the following productive activities is LEAST likely to be conducted on a large scale in the Caribbean region?
Packaging
Mining
Whaling
Building
Which one of the following activities can be BEST carried out as a cottage industry?
Smelting of iron ore
Manufacturing of leather sandals
Refining of petroleum
Canning of pigeon peas
Which of the following conditions would constitute a linkage between two industries?
The output of one industry of the economy becomes the input of an- other industry.
Two firms manufacture similar goods.
Two firms are responsible for the manufacture of different kinds of goods.
One firm shares the use of machin- ery with another firm.
'Mass production' refers to which of the following?
A nation's annual output of goods
Goods used to produce other goods
Goods produced by nature
Goods produced in large quantities
In which of the following situations would the individual named have limited liability?
Tom who has 200 shares in a com- pany that produces beer
Alfred who is running a business of his own
Mary who is carrying on a hairdress- ing shop jointly with her sister
Lucy who owns a private secretarial school
Which of the following describes capital-in- tensive industry?
Capital and labour in the same proportion
Large amounts of labour and very little capital
All capital and no labour
Large amounts of capital and very little labour
Which of the following documents gives the name of the ship and full particulars of the shipment of goods?
Bill of Sale
Bill of Lading
Way Bill
Broker's Bill
A machine whose cash price is $700 was bought on hire purchase for $784. The cost of credit was
$ 12
$ 84
$700
$784
In which of the following types of trade can the hire purchase method of buying be used?
Wholesale trade
Import trade
Foreign trade
Retail trade
A person who handles goods in the intermedi- ate stage between the producer and the re- tailer is referred to as a
businessman
wholesaler
sole trader
commission agent
Which of the following is NOT a function of the retailer?
Transporting goods to suitable storage facilities
Providing a local supply of goods
Preparing goods for resale
Selling in small quantities
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?
Import licence
Bill of lading
Charter party
Airway bill
A post-dated cheque is one which
was written no longer than six months ago
is dated by the businessman to agree with the date of the document requesting payment
is dated by the bank dates on the day the cheque is presented for payment
is dated for payment at a future date
Which of the following BEST suggests the bank's reason for dishonouring it?
The counterfoil has not been detached.
The counterfoil has not been completely filled out.
The amount in words and the amount in figures do not agree.
The signature is not legible.
Which of the following is the quickest method of payment for a businessman who is 20 000 kilometres away?
Cash
Cheque
Postal Order
Telegraphic money order
The bank service which allows a customer to make payments by cheques is the
current account
savings account
deposit account
capital account
One of the major functions of a central bank is to
issue notes and coins
accept deposit accounts
make loans and advances
issue stocks and shares
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 account
Wive's/husband's legally owned property not covered by insurance
Which of the following types of insurance is a government likely to require each employed individual to pay?
Liability insurance
National insurance
Life insurance
Car insurance
When the government deducts part of the workers' weekly or monthly salaries, the tax is called
income tax
corporation tax
capital gains tax
value added tax
Which of the following forms of taxation could be classified as 'direct'?
Customs duty
Income Tax
Purchase Tax
Excise duty
Which of the following BEST assists persons in satisfying their basic needs?
Money
Recreation
Travel
Education
When the demand for a commodity decreases and the supply increases the price should
increase
decrease
remain constant
exceed cost
If there is a scarcity of supply in potatoes and many people want to buy, the price is likely to be
inequilibrium
variable
low
high
Barry decided to start his own clothing store. He is happy working for himself because
of the long hours he has to put in
any decision he makes can be put into practice immediately
he wants to wear brand name clothes.
he wants to meet many people
Which of the following measures must a country adopt to correct adverse Balance of Payment problems? I. Tariffs II. Quotas III. Devaluation IV. Revaluation
I and II only
II and III only
I, III and IV only
I, II and III only
When there is competition, the price of an article will depend on the
relationship between its demand and supply
change in the cost of living
amount of money circulating in the country
changes in the value of money:
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
Which of the following 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.
A country has a favourable balance of trade when
it sells more than it buys
it buys more than it sells
there are no restrictions to trade
imported goods are cheaper
In trading, a licence involves having
a specific number of goods to be sold
permission to bring in goods
money to be paid in foreign goods
a ban on goods coming in to be sold
To correct an adverse balance of payments position, a government may
reduce income tax
increase the money supply
reduce credit
increase exports
Which of the countries listed below are NOT full members of Caricom?
Barbados, Jamaica, Trinidad and Tobago
Antigua, St. Lucia, St. Vincent
Bahamas, Haiti, Surinam
Dominica, Grenada, Guyana
Which of the following types of business environment is most typical of the Commonwealth Caribbean area?
Corporate state
Mixed economy
Centrally planned
Perfectly competitive
A nationalized industry is owned and controlled by
local businessmen
the Government
the Chamber of Commerce
the workers of the firm