CSEC Principles of Business Paper 1 May/June 2012 - Free CXC Past Paper with Answers

Barter is BEST described as a the

process of exchange involving the use of money

purchase of goods and services using cheques

exchange of goods and services without the use of money

exchange of goods and services using notes and coins

Which of the following is NOT a function of money?

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

Perfectly competitive

Private enterprise is run MAINLY to

distribute goods and services

provide jobs for more people

Which of the following is NOT an objective of the public sector?

Providing essential services

Regulating business activity

Promoting economic growth and development

The PRIMARY role of the human resource department of an organization is to

promote recreational activities for workers

hire, recruit, train and motivate workers

assist employees in understanding industrial relations

produce magazines highlighting outstanding workers

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

Which of the following involves selecting the objectives and procedures for achieving goals?

The MAIN purpose of installing a suggestion box in a company is to get workers' views about

ways of improving the workplace

ways of improving economic condi- tions

Which of the following statements BEST describes an authoritarian leader?

Willing to take suggestions

Allowing workers to plan their own work

Making decisions without consulta- tion

Consulting those likely to be affected by the decision

A MAJOR role of a trade union is to encourage

staff to become members of the union

advancement of the welfare of its members

staff to strike whenever they have problems at work

management to pay higher salaries and give longer vacations to staff

Which of the following are functions of the entrepreneur?

I. Ensuring that workers are unionised II. Co-ordinating the factors of production III. Undertaking risks by anticipating demand

An entrepreneur may reduce his risk of loss by

purchasing additional fixed assets

The MOST important use of collateral security to the lender is that it

establishes the financial position of the borrower

can be seized if the borrower fails to pay

improves the borrower's chance of getting a loan

gives the lender an idea of the state of the business

The condensation of the business plan is contained in the

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

An amount in a fixed deposit account

An insurance policy with a cash value

Legally owned property not covered by insurance

A mortgaged home with insurance coverage

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

A contract may be discharged by

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

Which of the following types of cheques allows an individual to receive cash on demand?

Which of the following types of capital is used for the day-to-day operations of a business?

Which of the following businesses may BEST be classified as a cottage industry?

JMN Superstore, located in the rural area

Mary's Craft Supplies, located at home

People's Cooperative Bank, located in Trinidad

Peter and John's Company, located in Jamaica

The movement of educated, skilled people to settle in other industrialised countries is referred to as

The holding of jobs for which employees are overqualified is referred to as

The introduction of mechanization in the production process may affect society by

reducing jobs for unskilled workers

increasing brain drain in the economy

reducing pollution of the country's cities

providing more jobs for unskilled workers

Which of the following is a feature of perfect competition?

Few buyers and many sellers

Many buyers and few sellers

Many buyers and many sellers

Barrier to entry into the market

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

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

A 'market' in economic terms is defined as

the business centre of the community

a specific place where buyers and sellers meet

a place where tangible goods are bought and sold

a situation which exists when buyers and sellers influence the price of goods

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

The term 'loss leader' is BEST described as a product which

has no real market value

the retailer is unable to locate

is sold cheaply to attract customers

the retailer gives away to customers

Which of the following gives identity to a specific producer's goods?

Which of the following factors are likely to influence customers when choosing a toothpaste? I. Size II. Brand III. Flavour

Market equilibrium exists when

buyers pay reasonable prices for goods

sellers are satisfied with the prices paid for their goods

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

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

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

Co-operative societies

Mr. Jones has several bills of fixed amounts to pay each month. His bank manager agreed to pay them monthly from Mr. Jones' account. This service, provided by the bank, refers to

With which of the following is a stock market identified?

Tom invests his savings by buying shares in a company. From this investment Tom expects to receive

One of the MAJOR functions of a Central Bank is to

issue notes and coins

issue stocks and shares

accept deposit accounts

make loans and advances

Which of the following services is provided by commercial banks?

Selling stocks and bonds

Controlling the supply of money

Accepting deposits from customers

Which of the following measures may be used by goverment to protect consumers? I. Taxation II. Price controls III. Provision of subsidies

Governments can influence business activity positively by reducing

Tax paid on wages and salaries is referred to as

Which of the following actions by government is MOST likely to lead to an improvement in the standard of living?

Increasing the income tax rate

Abolishing taxes on low incomes

Giving tax incentives to businesses

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

Consumption tax and tariffs

Customs duties and levies

PAYE and National Insurance

Excise duties and value added tax

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

Which of the following forms of taxation requires every employee to pay the same PERCENTAGE of his salary in taxes?

A country has a favourable balance of trade when

it sells more than it buys

it buys more than it sells

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

Provision of more infrastructure within the country

Increased use of the country's natural resources

Increased importation of consumer goods

Provision of loans and technical assistance for establishing local businesses

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

Which of the following is NOT a feature of free trade?

Trade specialization

Increase in world output

Comparative cost advantage

A government can correct an adverse balance of payments problem by

implementing price floors

increasing customs duties

reducing severance payments

improving the rate of inflation

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

Producers are able to increase their market size.

Political links are developed with other countries.

Import restrictions can be imposed on foreign items.

A greater variety of goods is obtained from overseas.

Which of the following methods can government use to reduce unemployment?

Increases in income tax

Deflation of the economy

Employment levy on firms

Increased interest rates on borrowing

Which of the following is a feature of economic dualism in the Caribbean?

Small farming sector

Rural-urban migration

Urban-rural migration

Large manufacturing sector

Which of the following organisations would settle a dispute among banana-producing countries of the Caribbean and Central America over preferential agreement in the European Community?

World Trade Organization

Caribbean Development Bank

Caricom Single Market and Economy

Organization of Petroleum Exporting Countries

Which of the following are MAJOR economic problems facing many Caribbean countries today? I. High levels of unemployment II. Lack of capital for investment III. Low productivity in manufacturing

In periods of inflation, the ability to raise additional capital for expansion is MOST likely to be a problem for

multi-national corporations

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

CSEC Principles of Business Paper 1 May/June 2012 - Free CXC Past Paper with Answers

CSEC Principles of Business Paper 1 May/June 2012 Questions