Free CXC Principles of Business Paper 1 May/June 2017 past paper from 2017. 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 2017 - Free CXC Past Paper with Answers
Free CXC Principles of Business Paper 1 May/June 2017 past paper from 2017. 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.
Which of the following types of business environment is MOST typical of the Commonwealth Caribbean?
Corporate state
Mixed economy
Centrally planned
Perfectly competitive
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
A MAJOR function of the public sector is to
make a profit
serve the entire population
serve the interest of the shareholder
inspire competition among businesses
The term 'division of labour' can be defined as the
organization of tasks in production
assembling of goods for distribution
separation of tasks to complete a job
employment of different types of workers
Private enterprise is run MAINLY to
create profits
reduce inflation
distribute goods and services
provide jobs for more people
Items 6–7 refer to the following diagram relating to the structure of an organization.
The purchasing supervisor reports directly to the
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
Item 8 refers to the following information. Mr Lloyd, manager of LM Ltd, holds regular staff meetings to listen to ideas from employees before making decisions that would affect the future of the company.
What leadership style does Mr Lloyd employ?
Autocratic
Charismatic
Democratic
Laissez faire
Management information system (MIS) is defined as the
use of computer technology to gather information for use in making decisions within an organization
technological benefits gained by an organization for being part of a well organized industry
use of various factors within a business to reduce costs and increase profits
management process responsible for identifying, anticipating and satisfying consumer requirements at a profit
Which of the following organizations is LEAST likely to use a management information system?
The national bank
A shoeshine shop
A department store
A beauty supplies outlet
Under which of the following categories would subsidized meals for employees fall?
Fringe benefits
Duty allowance
Wages and salaries
Workmen's compensation
Which of the following is NOT an example of collateral?
Bond
Stock
Property
Money order
Which of the following individuals benefit from having 'limited liability status'?
Franchisees
Shareholders
Ordinary partners
Debenture holders
The condensed version of the business plan is contained in the
feasibility plan
marketing plan
keynote summary
executive summary
JB Auto Company decided to export car engines from Barbados to Trinidad. Which of the following methods is BEST for transporting the engines?
Air
Sea
Rail
Road
Cash used to secure a loan at the bank is referred to as
collateral
fixed assets
current assets
fixed deposits
A 'purchase order' is a
request for additional goods
notification of goods received
statement of outstanding debts
document offering to buy goods
A contract may be discharged by
breach
change of mind
inconsideration
misappropriation
Kiki sustained burns while at work at a local fast food restaurant. Under which of the following insurance policies is she MOST likely to be compensated?
Public liability
Fidelity guarantee
Property guarantee
Employers' liability
The monthly payments made to an insurance company by its policy holders are known as
deposits
premiums
instalments
endowments
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 types of capital is used for the day-to-day operations of a business?
Fixed
Floating
Working
Nominal
To which of the following industries does a firm involved in food processing belong?
Service
Extractive
Constructive
Manufacturing
What impact would the introduction of mechanization in the production process have on a society?
Reduction in jobs for unskilled workers
Increased brain drain in the economy
Reduction in the pollution of the country's cities
Provision of more jobs for unskilled workers
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 businesses may BEST be classified as a cottage industry?
JMN Superstore, located in the rural area
People's Cooperative Bank, located in Trinidad
Mary's Craft Supplies, located at home
Peter and John's Company, located in Jamaica
In the Caribbean, many people are hired for sugar cane farming and very little equipment is used. This industry can BEST be described as
labour intensive
capital intensive
having low capital input
having high capital input
Which of the following terms describes a market consisting of a large number of producers and consumers?
Oligopoly
Monopoly
Perfect market
Imperfect market
The term 'loss leader' is BEST described as a product which
has no real market value
the retailer is unable to locate
the retailer gives away to customers
is sold cheaply to attract customers
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
A situation whereby a business gains editorial space without having to pay for it is called
publicity
marketing
advertising
discounting
In a Caribbean territory, there is only one supplier that provides electricity to all homes, businesses and communities. What market structure does this BEST illustrate?
Duopoly
Oligopoly
Monopoly
Perfect competition
Which of the following gives identity to a specific producer's goods?
Label
Patent
Brand
Copyright
Which of the following operations is an example of sales promotion?
Warehousing
Free sampling
Servicing goods
Gathering information
Mr Jones has several bills of fixed amounts to pay each month. Mr Jones made an arrangement with his bank to make these monthly payments from his account. This service, provided by the bank, is referred to as
an overdraft
a fixed deposit
a standing order
a letter of credit
Tom invests his savings by buying shares in a company. From this investment, Tom expects to receive
profits
interest
revenue
dividends
Investment can be defined as
the stock of goods in a country
the amount of money available at a given time
additions to the capital stock of a country
the amount of capital owned by the government
Which of the following services is provided by commercial banks?
Printing money
Selling stocks and bonds
Controlling the supply of money
Accepting deposits from customers
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
A stock market is identified with
costs and prices
risks and benefits
rent and investment
premium and reward
Governments can influence business activity positively by reducing
taxes
grants
subsidies
expenditure
A 'price control' may be defined as a
tax on goods and services
government ban on imports
grant given to producers to reduce their prices
government limit on the price of goods or services
The success of a government's economic policies can be MOST effectively measured by
an increase in the level of policies
an increase in the standard of living
a decrease in the level of employment
a decrease in the volume of production
Which of the following forms of taxation can be classified as 'direct'?
Income tax
Excise duty
Purchase tax
Customs duty
Which of the following is a function of a Chamber of Commerce?
Creating employment
Protecting the environment
Assisting in securing markets for producers
Providing financial aid to hurricane victims
Which of the following statements BEST explains a 'proportional tax'?
The rate of tax increases as income increases.
The same rate of tax is paid at all income levels.
High income earners pay a smaller percentage of income in tax than low income earners.
High income earners pay a larger percentage of income in tax than low income earners.
Which of the following measures are used by governments to redistribute income?
Custom duties and levies
Consumption tax and tariffs
PAYE and National Insurance
Excise duties and value added tax
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
Which of the following practices would NOT contribute to the economic development and growth of a country?
Provision of loans and technical assistance for establishing local businesses
Provision of more infrastructure within the country
Increased use of the country's natural resources
Increased importation of consumer goods
Education contributes to a country's economic growth by ensuring that the workforce is highly
mobile
efficient
classified
structured
Which of the following types of restrictions limits the quantity of goods that citizens of a country are allowed to buy from overseas?
Import duty
Export duty
Export quota
Import quota
Export licences are issued MAINLY to
encourage local businesses to produce more goods for export
indicate to the importing country the price at which the goods are to be sold
indicate to the importing country that the goods are of a high standard
enable the government to control the flow of goods being exported
The buying and selling of goods and services among countries is called
balance of trade
international trade
balance of payment
international marketing
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.
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
The purpose of CARICOM is to
allow member states to collaborate
encourage the transfer of technology within the region
foster interregional trade and common services
allow for the unrestricted movement of persons among the territories
Which of the following terms defines a continuous rise in the general level of prices?
Inflation
Reflation
Deflation
Depression
In periods of inflation, the ability to raise additional capital for expansion is MOST likely to be a problem for
partnerships
sole traders
public companies
multinational corporations
Which of the following is NOT a benefit of industrialization?
A reduction in the level of imports
An increase in the level of exports
An increase in the unemployment rate
A decrease in the unemployment rate
Which of the following organizations would settle a dispute among banana-producing countries of the Caribbean and Central America over preferential agreement with the European Union?
World Trade Organization (WTO)
Caribbean Development Bank (CDB)
CARICOM Single Market and Economy (CSME)
Organization of Petroleum Exporting Countries (OPEC)