CSEC Principles of Business Paper 1 May/June 2011 - Free CXC Past Paper with Answers

Which of the following is NOT a function of money?

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

Which of the following characteristics of the sole trader form of business is NOT advantageous to the owner?

Low operational costs

Ownership of all profits

Rapport with customers

In a public limited company, the losses are borne by the

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

Perfectly competitive

Which of the following responsibilities MUST be assumed by the management of a company?

I. Producing goods of a marketable quality II. Maximizing efficiency and creating surpluses III. Determining dividends to be paid to shareholders IV. Maintaining good communication and human relations with staff

Item 7 refers to the diagram below which shows a section of a typical vertical organizational chart for a manufacturing company.

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

Setting objectives and the procedures for achieving goals are referred to as

A MAJOR role of a trade union is to encourage

staff to become members of the union

staff to strike whenever they have problems at work

advancement of the welfare of its members

management to pay higher salaries and give longer vacations to staff

The PRIMARY role of the Human Resources Department of a firm is to

hire, recruit, train and motivate employees

promote recreational activities for employees

compile magazines highlighting outstanding employees

assist employees in understanding industrial relations

Which of the following organizations is LEAST likely to use a Manangement Information System?

A beauty supplies outlet

Which of the following are functions of the entrepreneur?

I. Providing finance needed for production II. Co-ordinating the factors of production III. Undertaking risks by anticipating demand IV. Ensuring that workers join a union

Cash used to secure a loan at the bank is referred to as

Which of the following situations illustrates entrepreneurship?

A secretary who uses a computer application to do her job

A farmer who uses the fork to plough his land

An assistant who developed a software application for his job

An employee who goes to work on time and does his work well

An entrepreneur may reduce his risk of loss by

cleaning offices regularly

purchasing additional fixed assets

An overview of a business plan is contained in the

Which of the following factors prevents an agreement from being considered a valid contract?

Offer and acceptance

The monthly payments collected by an insurance company on behalf of its policy holders are known as

Which of the following describes an essential feature of a valid contract?

The offer has been communicated to the offeree.

The offer is made in writing by the offeror.

A counter offer has been made by the offeree to the offeror.

The acceptance is made in writing to the offeror

A post-dated cheque is one which

is dated for payment at a future date

'was written no longer than six months ago

is dated to agree with the date of the document requesting payment

is dated by the bank's date on the day the cheque is presented for payment

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

Which of the following is LEAST likely to result from growth in an organization?

Greater productivity

More division of labour

Increased communication

Increased capital investment

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

Unskilled labourers will work harder!

Unskilled labourers will demand higher wages.

Production levels of goods and services will decrease.

The demand for skilled labour and professional services will decrease.

In the Caribbean, many people are hired for sugarcane 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 factors of production earns interest?

Which of the following factors does NOT affect the supply of labour?

Which of the following is a product of the manufacturing industry?

Which of the following can be described as a marketing activity?

Issuing bulletins on staff matters

Distributing commodities to outlets

Publicising advertisements for new staff

Ensuring that workers are given fringe benefits

The PRIMARY function of advertising is to

communicate information

promote brand loyalty

ensure wider distribution of goods

promote public relations

Which of the following market situations is typically found where there is a large number of producers and consumers?

Which of the following characteristics BEST describes a perfectly competitive market?

Few sellers and many buyers

Difficult entry to new markets

Production of almost identical goods

Imperfect consumer knowledge of prices

The price of an item is usually high when the number of people wanting to buy it is

large and the quantity for sale is small

large and the quantity for sale is large

few and the quantity for sale is small

few and the quantity for sale is large

Which of the following is NOT a function of the retailer?

Selling in small quantities

Preparing goods for resale

Providing a local supply of goods

Transporting goods to suitable storage facilities

Which of the following MUST be taken into account when packaging goods for retail?

I. Cost II. Brand III. Protection IV. Attractiveness

Which of the following can have their shares traded on the stock exchange?

Co-operative societies

Which of the following are responsibilities of commercial banks?

Which of the following are responsibilities of commercial banks? I. Controlling the supply of money II. Offering loans to small businesses III. Accepting deposits from customers IV. Acting as bankers to the government

One of the MAJOR functions of a Central Bank is to

issue notes and coins

accept deposit accounts

issue stocks and shares

make loans and advances

Investment can be defined as

the stock of goods in a country

additions to the capital stock of a country

the amount of money available at a given time

the amount of capital owned by the government

Which of the following institutions are NOT regulated by Central Banks?

Joint stock companies

Which of the following graphs shows regressive taxation?

The term 'subsidies' refers to

grants given by government

taxes withheld by government

loans given to small businesses

profits realized from investment

Which of the following measures are used by government to redistribute income?

Custom duties and levies

Consumption tax and tariffs

PAYE and national insurance

Excise duties and value added tax

Tax paid on wages and salaries is referred to as

Which of the following is NOT regarded as a role of taxation?

Raising revenue for government

Influencing the distribution of incomes and wealth

Influencing total expenditure on goods and services

Influencing the investment decisions of publicly owned enterprises

Which of the following forms of taxation can be classified as 'direct'?

Which of the following institutions is involved in protecting the consumer?

International Monetary Fund (IMF)

Natural Resources Conservation Authority (NRCA)

A government can correct an adverse foreign exchange problem by

implementing price floors

increasing customs duties

reducing severance payments

improving the rate of inflation

Which of the following are LIKELY to affect the standard of living in a country? I. A high crime rate II. A low literacy rate III. Widespread pollution IV. Poor advertisements

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

Increased importation of consumer goods

Increased use of the country's natural resources

Provision of more infrastructure within the country

Provision of loans and technical assistance for establishing local businesses

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

Political links are developed with other countries.

Producers are able to increase their market size.

A greater variety of goods is obtained from overseas.

Import restrictions can be imposed on foreign items.

Export licences are issued MAINLY to

enable the government to control the flow of goods being exported

encourage local businesses to produce more goods for export

indicate to the importing country that the goods are of a high standard

indicate to the importing country the price at which the goods are to be sold

A country has a favourable balance of trade when

it buys more than it sells

it sells more than it buys

imported goods are cheaper

there are no restrictions to trade

The buying and selling of goods and services among countries is called

international marketing

Which of these methods can a government use to reduce unemployment?

Increases in income tax

Deflation of the economy

Employment levy on firms

Increased interest rates on borrowing

To correct an adverse balance of payments position, a government may

increase the money supply

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

Which of the following practices may be MOST appropriate in solving the unemployment problem in a developing country with a large labour force?

I. Increase in salaries II. Increased mechanisation III. Increase in vocational training programmes IV. Greater production through increased labour

Which of the following are MAJOR arguments in favour of free trade? I. Protectionism II. Trade specialization III. Increase in world output IV. Comparative cost advantage

Which of the following countries are NOT members of the Organization of Eastern Caribbean States?

CSEC Principles of Business Paper 1 May/June 2011 - Free CXC Past Paper with Answers

CSEC Principles of Business Paper 1 May/June 2011 Questions