Free CXC Principles of Business Paper 1 January 2020 past paper from 2020. 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 January 2020 - Free CXC Past Paper with Answers
Free CXC Principles of Business Paper 1 January 2020 past paper from 2020. 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.
Private enterprise is run MAINLY to
create profit
reduce inflation
provide jobs for more people
distribute goods and services fairly
The MAIN role of the human resource department of an organization is to
recruit qualified employees
promote recreational activities for workers
assist employees in understanding industrial relations
produce magazines highlighting outstanding workers
Which of the following is NOT a function of money?
Medium of exchange
Measure of value
Store of value
Indivisibility
In which of the following types of economic systems does the state own and control all of the country's economic resources?
Mixed
Planned
Capitalist
Subsistence
A postdated 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
The MAIN objective of a trade union is to encourage the
unionization of workers
increase of salaries and vacations
advancement of the welfare of its members
firing of workers whenever they have problems at work
In which of the following categories would subsidized meals for employees fall?
Fringe benefits
Duty allowances
Wages and salaries
Workmen's compensation
Which of the following phrases BEST describes an authoritarian leader?
Willing to take suggestions
Making decisions without consul-tation
Allowing workers to plan their own work
Consulting those likely to be affected by decisions
Characteristics of written communication include I. documented evidence II. detailed messaging III. instant feedback
I and II only
I and III only
II and III only
I, II and III
Which of the following management functions is a manager engaged in when he grants a worker 'time off with pay'?
Planning
Delegating
Motivating
Supervising
Richard has been an employee of MTSL for over ten years. He is up for a promotion at the end of the year. A manager's nephew who was recently hired has been promoted ahead of Richard. An upset Richard has taken this issue to his trade union.
This conflict is as a result of
unfair practices
a lack of job security
a lack of fringe benefits
poor working conditions
Which of the following is an example of an entrepreneur?
Joe rents an office space.
Roger goes to the bank to get a loan.
Sally occasionally babysits her neighbour's child.
Donna operates an online bakery from her home.
Which of the following is NOT an element of a business plan?
Legal plan
Financial plan
Marketing plan
Production plan
Assets used to secure a loan at the bank are referred to as
collateral
fixed capital
fixed deposits
current accounts
One of the MAIN functions of an entrepreneur is to
prepare the accounting records
advertise the company's product
organize the factors of production
organize the marketing of the company's product
Which of the following variables is NOT an element of a feasibility study?
Profitability
Target market
Market demand
Business design
A contract may be discharged by I. breach II. lapse of time III. offer and acceptance
I and II only
I and III only
II and III only
I, II and III
The monthly payments collected by an insurance company from its policyholders are known as
deposits
premiums
instalments
endowments
An essential feature of a valid contract is that
the offer has been made to the offeree
the offer is made in writing by the offeror
a counteroffer has been made by the offeree to the offeror
the offer has been accepted by the offeree either in writing or orally
Mr John offered his car for sale for $70 000. Miss Maraj said that she would pay him $66 000 for it. Which of the following phrases BEST describes Miss Maraj's action?
Accepted the offer
Agreed to a contract
Made a counter offer
Made an invitation to treat
Which of the following businesses can be classified as a cottage industry?
JMN Superstore, located in the rural area
Mary's Craft Supplies, located at Mary's home
Peter and John's Company, located in Jamaica
People's Cooperative Bank, located in Trinidad
The amount of labour available for productive activity is known as the
labour force
labour movement
employment level
employment opportunity
Joel bought a dye factory because he wanted to ensure that he received a regular supply of dyes to make tie-and-dye scarves. In which type of linkage is Joel engaged?
Forward
Diagonal
Backward
Horizontal
Which of the following outcomes is LEAST likely to result from growth in an organization?
Greater productivity
More division of labour
Increased communication
Increased capital investment
What type of capital is defined as money used for the day-to-day operations of a business?
Fixed
Floating
Nominal
Working
Subsistence production is BEST described as producing goods for
profit
export
local trade
personal use
Primary production is concerned with the
distribution of goods
manufacture of goods
provision of raw materials
provision of goods to meet essential needs
Which of the following can be described as a marketing activity?
Distributing commodities to outlets
Publicizing advertisements for new staff
Issuing bulletins relating to staff matters
Ensuring that workers are given fringe benefits
Which of the following elements comprise the marketing mix?
Price, public, promotion, place
Product, price, promotion, place
Product, promotion, packaging, place
Packaging, product, promotion, price
Price discrimination may BEST be defined as setting
a lower volume of goods at a higher price
a higher volume of goods at a lower price
the same price for different products
different prices for the same product
Which of the following gives identity to a specific producer's goods?
Label
Brand
Patent
Copyright
Which of the following actions is LEAST likely to be described as good public relations for a company?
Sponsorship of a steel band
The offering of scholarships
Hosting of annual sport events
Reduction in prices to retailers
Merchandising can BEST be described as
giving merchants goods on consignment
training employees to conduct market research
counting stock for an electronic point of sale system
highlighting the physical and visual aspects of selling
The PRIMARY function of advertising is to
promote brand loyalty
promote public relations
communicate information
ensure a wider distribution of goods
Which of the following is NOT part of the distribution chain?
Manufacturer
Wholesaler
Contractor
Retailer
Which of the following modes of transport is BEST suited for moving large amounts of long haul cargo?
Sea
Rail
Road
Pipeline
Which of the following documents shows ownership of imported goods?
Bill of exchange
Letter of credit
Import licence
Bill of lading
Which of the following types of providers are FedEx and DHL?
2PL
3PL
4PL
5PL
A supply chain is BEST defined as the
storage of work-in-progress and finished goods
processing of raw materials and components into finished goods
delivery of finished products from the point of origin to the point of destination
system of organizations and resources involved in moving products from suppliers to customers
The acronym GPS stands for
global positioning system
global programming system
geographic positioning system
geographic programming system
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
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 plan for systematic saving and spending is referred to as
trading
investing
financing
budgeting
Mr Jones has several bills of fixed amounts to pay each month. His bank manager agrees to pay them monthly from Mr Jones' account. This service, provided by the bank, refers to
overdrafts
acting trustees
standing orders
letters of credit
Which of the following is NOT a source of income for an individual who is engaged in personal budgeting?
Salaries earned
Loan repayment
Interest from savings
Dividends from investments
The central bank is owned and controlled by the
government
shareholders
public sector
country's citizens
Which of the following services are provided by commercial banks? I. Controlling the supply of money II. Offering loans to small businesses III. Accepting deposits from custom- ers
I and II only
I and III only
II and III only
I, II and III
Financial investments can be defined as the
assets that generate income
stock of goods available in a country
amount of money available at a given time
amount of capital owned by the government
Which of the following measures could be used to protect the environment? I. Recycling II. Deforestation III. Water conservation
I and II only
I and III only
II and III only
I, II and III
Which of the following objectives is an economic aim of government?
Increase the level of literacy.
Stabilize the national currency.
Develop a proper legal system.
Maintain an effective security force.
Which of the following activities is a function of a Chamber of Commerce?
Creating employment
Protecting the environment
Providing financial aid to hurricane victims
Advancing the interest of the business community
Which of the following measures are used by governments to redistribute income?
Customs duties and levies
Consumption tax and tariffs
PAYE and national insurance
Excise duties and value added tax
Tax paid on goods entering a country is referred to as
income tax
excise duty
customs duty
corporation tax
Governments offer subsidies to businesses to
force them to pay corporation tax
reduce costs and ultimately prices
increase costs and ultimately prices
increase the price of imported goods
Which of the following methods can a government use to reduce unemployment?
Increase in income tax
Deflation of the economy
Increase interest rates on borrowers
Impose employment levies on firms
Which of the following functions is NOT applicable to a management information system (MIS)?
Caters to the information needs of all levels of management
Provides greater flexibility through an integrated database
Allows the flow of information between functional areas
Changes the procedures used to carry out tasks
A MAJOR function of CARICOM is to
allow member states to collaborate
foster interregional trade and common services
encourage the transfer of technology within the region
allow for the unrestricted movement of persons among territories
Economic dualism refers to
uneven sectorial growth
advancement in technology
increased foreign investment
growth in the agricultural sector
The buying and selling of goods and services among countries is called
balance of trade
international trade
balance of payments
international marketing
The introduction of technology in the production process may affect society by
reducing pollution of cities
providing more jobs for unskilled workers
reducing jobs for unskilled workers
increasing 'brain drain' in the economy