Free CXC Principles of Business Paper 1 May/June 2014 past paper from 2014. 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 2014 - Free CXC Past Paper with Answers
Free CXC Principles of Business Paper 1 May/June 2014 past paper from 2014. 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.
Barter is BEST described as 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
Labour is BEST defined as the
physical and mental capabilities used to perform tasks
ability to carry out management functions effectively
level of skills training received by individuals who are working
total number of persons who hold jobs in government ministries
Which of the following is NOT a trading instrument?
Cheques
Credit cards
Bills of exchange
Money remittance
The term 'trade' refers to
the selling of goods and services on the stock market
the movement of immigrants from one country to another
any commercial activity involving the exchange of goods and services
the negotiation process between trade unions and management
In a public limited company, the losses are borne by the
staff
directors
community
shareholders
The PRIMARY role of the human resource department of an organization is to
hire, recruit, train and motivate workers
promote recreational activities for workers
assist employees in understanding industrial relations
produce magazines highlighting outstanding workers
Items 7-8 refer to the following diagram.
The purchasing supervisor reports directly to which of the following?
CEO
HR Supervisor
Finance Manager
Production Manager
Which of the following positions would be BEST suited at 'X'?
Chief Advisor
Board of Directors
Managing Director
Human Resource Manager
Which of the following departments is LIKELY to use its Management Information System (MIS) to manage information about customers and their response to the products they sell?
Finance
Marketing
Production
Human Resource
Subsidised meals for employees would fall under which of the following categories?
Fringe benefits
Duty allowance
Wages and salaries
Workmen's compensation
A MAJOR role of a trade union is to encourage the
unionization of workers
advancement of the welfare of its members
sacking of workers whenever they have problems at work
increase of salaries and vacations
An entrepreneur who wants to maintain control of the business would be advised to register the business as a
Sole Trader
Partnership
Limited Company
Private Limited Company
Which of the following is NOT an example of collateral?
Bonds
Stocks
Property
Money orders
The MOST important use of collateral security to the lender is that it
can be seized if the borrower fails to pay
establishes the financial position of the borrower
improves the borrower's chance of getting a loan
gives the lender an idea of the state of the business
The synopsis of the business plan is contained in the
feasibility plan
marketing plan
keynote summary
executive summary
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 on the day the cheque is presented for payment
Which of the following factors prevents an agreement from being considered a valid contract?
Consideration
Legal purpose
Misrepresentation
Offer and acceptance
A contract may be discharged by which of the following?
I. Breach II. Performance III. Lapse of time
I and II only
I and III only
II and III only
I, II and III
A 'purchase order' is a
request for additional goods
notification of goods received
statement of outstanding debts
document offering to buy goods
Which of the following types of cheques allows an individual to receive cash on demand?
Open
Crossed
Certified
Banker's
Which of the following types of capital is used for the day-to-day operations of a business?
Fixed
Floating
Working
Nominal
Which of the following factors of production earns interest?
Land
Capital
Labour
Enterprise
The term 'human resources' refers to
materials and goods made by human beings
capital invested by shareholders in a company
raw materials used in the manufacture of goods
persons available for productive and professional services
Which of the following items is a product of the manufacturing industry?
Gold
A car
Wood
A house
Which of the following conditions would constitute a linkage between two industries?
Two firms manufacture similar goods.
One firm shares the use of machinery with another firm.
Two firms are responsible for the manufacture of different kinds of goods.
The output of one industry of the economy becomes the input of another industry.
Which of the following is a feature of perfect competition?
Few buyers and many sellers
Many buyers and few sellers
Barrier to entry into the market
Many buyers and many sellers
Which of the following is an example of service-type production?
Oil mining
Pottery making
Communication
Newspaper printing
The PRIMARY function of advertising is to
promote brand loyalty
promote public relations
communicate information
ensure wider distribution of goods
Which of the following is NOT a function of the retailer?
Preparing goods for resale
Selling in small quantities
Providing a local supply of goods
Transporting goods to suitable storage facilities
Which of the following market situations is typically found where there are a large number of producers and consumers?
Oligopoly
Monopoly
Perfect market
Imperfect market
Which of the following gives identity to a specific producer's goods?
Label
Brand
Patent
Copyright
In which of the following types of trade can the hire purchase method of buying be used?
Retail
Import
Foreign
Wholesale
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
large quantity for sale and many people wanting to buy
small quantity for sale and many people wanting to buy
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 may cause the bank to dishonour a cheque?
I. Cheque is crossed II. Irregular signature III. Cheque is post-dated
I and II only
I and III only
II and III only
I, II and III
Which of the following is a function of the commercial bank and NOT the central bank?
Providing personal loans
Carrying out monetary policy
Giving advice to government
Managing the financial sector
Which of the following are characteristics of a stock market?
Costs and prices
Risks and benefits
Rent and investment
Premium and reward
Tom invests his savings by buying shares in a company. From this investment Tom expects to receive
profits
interests
revenues
dividends
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
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 forms of taxation is imposed on goods produced in a country?
Excise duty
Preference duty
Excise drawback
Customs drawback
A price control may be defined as a
tax on goods and services
government ban on imports
government limit on the price of a good or service
grant given to producers to reduce their prices
Which of the following is NOT regarded as a role of taxation?
To raise revenue for government
To influence the distribution of incomes and wealth
To influence total expenditure on goods and services
To influence the investment decisions of publicly owned enterprises
Which of the following actions by government is MOST likely to lead to an improvement in the standard of living?
Printing more money
Increasing the income tax rate
Abolishing taxes on low incomes
Giving tax incentives to businesses
Which of the following forms of taxation can be classified as 'direct'?
Income tax
Excise duty
Purchase tax
Customs duty
Governments offer subsidies to businesses to
force them to pay corporation tax
increase costs and ultimately prices
reduce the costs and ultimately prices
increase the price of imported goods
Which of the following forms of taxation requires every employee to pay the same percentage of his salary in taxes?
Indirect
Regressive
Progressive
Proportional
In calculating Net National Product, depreciation refers to the
increase in the price level
decrease in the price level
decrease in capital stock value
increase in capital stock value
Inflation can BEST be described as
fluctuations in the general price level
a general and sustained rise in the level of prices
a fall in the level of prices of goods and services
changes in the level of prices of goods and services
Export licences are issued MAINLY to
encourage local businesses to produce more goods for export
enable the government to control the flow of goods being exported
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
The term ‘trade in securities’ refers to
the selling of goods and services on the stock market
the movement of immigrants from one country to another
the negotiation process between trade unions and management
any commercial activity involving the exchange of goods and services
Which of the following is NOT a feature of free trade?
Protectionism
Trade specialization
Increase in world output
Comparative cost advantage
The total value of goods imported minus the total value of goods exported is referred to as
balance of trade
total currency flow
balance of payments
current account balance
A quota can BEST be described as
a ban on the sale of goods
a licence given to import goods
an external tariff among countries
a restriction on the quantity imported
The term ‘economic dualism’defines an economy in which one sector is
highly dependent on local capital
highly dependent on foreign capital
overpopulated while the other is underpopulated
technologically advanced while the other is technologically retarded
To correct an adverse balance of payments, a government may
reduce credit
increase exports
reduce income tax
increase the money supply
The purpose of CARICOM is to
allow member states to collaborate
foster interregional trade and common services
encourage the transfer of tech-nology within the region
allow for unrestricted movement of persons among the territories
The MAJOR aim of the European Union (EU) is free movement of
I. goods II. people III. capital
I and II only
I and III only
II and III only
I, II and III
In periods of inflation, the ability to raise additional capital for expansion is MOST likely to be a problem for
sole traders
partnerships
public companies
multi-national corporations
Which of the following countries are NOT members of the Organization of Eastern Caribbean States (OECS)?
Anguilla and Grenada
Guyana and Bahamas
Barbados and Jamaica
Dominica and St. Lucia