CSEC Principles of Business Paper 1 May/June 2021 - Free CXC Past Paper with Answers

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TEST CODE: 0 1 2 4 0 0 1 0 SUBJECT: PRINCIPLES OF BUSINESS - Paper 01 PROFICIENCY: GENERAL REGISTRATION NUMBER: FULL NAME: (BLOCK LETTERS) Signature: Date:

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Which of the following is NOT an example of an unethical business practice?

Retrenching inefficient workers

Use of misleading advertisements

Selecting the objectives and the procedures for achieving goals is referred to as

Item 7 refers to the following diagram of the structure of an organization.

Which of the following positions would be BEST suited at X?

Human resource manager

Item 8 refers to the following statement. "The leader deliberately stands back and lets the subordinates plan their own work and make their own decisions as far as possible."

The type of leadership described in the statement above is

Which of the following actions demon- strate the characteristics of a good leader? I. Inspires workers II. Delegates responsibilities III. Makes intelligent decisions

Which of the following are benefits of written communication? I. Instant feedback II. Provides evidence III. Useful for detailed messages

In which of the following categories would subsidized meals for employees fall?

Workmen's compensation

The MAIN advantage of collateral security to the lender is that it

determines the financial position of the borrower

gives the lender an idea of the state of the business

improves the borrower's chance of getting a loan

can be seized if the borrower fails to pay

Which of the following are examples of secondary sources of data? I. Company records II. Former employees III. Government census

Which of the following is a regulatory issue for the entrepreneur?

Using a credit card to transact business

Offering hire purchase options to customers

Advertising the business locally and regionally

Paying national insurance to the government

An analysis of the viability of a business idea and an examination of the different aspects of operating a business is known as a

An entrepreneur may reduce his risk of loss by

sponsoring community projects

purchasing additional fixed assets

What type of contract is demonstrated in the case above?

Kevin sustained burns while at work at a local restaurant. Under which of the following insurance policies is he LIKELY: to be compensated?

Employers' liability

Which of the following is NOT a legitimate way of terminating a contract?

Which of the following factors prevent(s) an agreement from being considered a valid contract?

Offer and acceptance

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

Which of the following LEAST affects the location of an extractive industry?

Proximity to large shopping areas

Availability of an abundant labour supply

Proximity to sources of raw materials

The presence of good roads and drainage

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

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

Which of the following conditions would constitute a linkage between two industries?

Two industries manufacture similar goods.

One industry shares the use of machinery with another industry.

Two industries are responsible for the manufacture of different kinds of goods.

The output of one industry of the economy becomes the input of another industry.

Productivity can be measured by

The amount of labour available for productive activity is known as

efficiency of labour

The inventor of a new oyster opener has the legal right to be the sole producer of this product. This is known as a

Which of the following activities is an example of sales promotion?

Gathering information

Product, price, promotion and place are components of a

A situation where a business gains editorial space without having to pay for it is called

In which of the following types of trade is the hire purchase method of buying MOST likely to be used?

Which of the following factors is LEAST likely to influence consumer behaviour?

The MOST suitable medium of advertising in an area with high vehicular traffic is

point of sale displays

JB Auto Company decided to export car engines from Barbados to Trinidad. Which of the following methods is BEST suited for transporting the engines?

John operates a shop in his community. He buys goods in bulk from a nearby supermarket and sells them in small quantities to his customers. John would be referred to as

Which of the following documents shows ownership of imported goods?

Logistics in business is defined as

managing data from conception, production and storage to retrieval

using all systems to move an idea from conception to production and then sales

formulating a business idea, systematically gathering data, then following through with production

managing resources from the point of acquisition, storage and transportation to their final destination

Which of the following is the final step in a supply chain operation?

Transformation of natural resources into finished products

Movement to and storage of raw materials in the warehouse

Processing of raw materials and components into finished goods

Delivering the finished product from point of origin to point of destination

Which of the following is NOT a type of account offered by commercial banks to the public?

Fixed deposit account

Which of the following is a service provided by commercial banks?

Selling stocks and bonds

Controlling the supply of money

Accepting deposits from customers

Which of the following is a global logistics provider?

Which of the following characteristics are associated with the stock market?

Rents and investments

Premiums and rewards

Investment can be defined as

the amount of capital owned by the government

the amount of money available at a given time

additions to the capital stock of a country

the stock of goods of a country

Which of the following is NOT a source of income for an individual who engages in personal budgeting?

Interest from savings

Dividends from investments

Which of the following actions by a 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

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

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

The central bank is owned and controlled by the

Which of the following is a function of a chamber of commerce?

Protecting the environment

Assisting in securing markets for products

Providing financial aid to hurricane victims

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

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

Governments can positively influence business activity by reducing

Item 54 refers to the following information.

Mrs Brown receives a job offer from a company in Barbados. In order to take up the job, she decides to leave her home country of Trinidad and move permanently to Barbados.

In Trinidad, Mrs Brown would be referred to as

a travelling officer

One economic solution to unemployment in the Caribbean is to

reduce the birth rate

nationalize industries

encourage industrialization

The gross national product (GNP) of a country is the total

value of goods and services available in the country in a given period

value of goods and services produced by the country in a given period

income earned in the country in a given period less capital consumption

income earned in the country less incomes payable outside the country

The MAIN purpose 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 the territories

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

Which of the following represents the correct stages in the development of the CARICOM Single Market and Economy (CSME)?

CARIFTA $\rightarrow$ Federation $\rightarrow$ CARICOM $\rightarrow$ CSME

CARIFTA $\rightarrow$ CARICOM $\rightarrow$ Federation $\rightarrow$ CSME

Federation $\rightarrow$ CARIFTA $\rightarrow$ CARICOM $\rightarrow$ CSME

Federation $\rightarrow$ CARICOM $\rightarrow$ CARIFTA $\rightarrow$ CSME

Unemployment caused by a downturn in the economy is referred to as

CSEC Principles of Business Paper 1 May/June 2021 - Free CXC Past Paper with Answers

CSEC Principles of Business Paper 1 May/June 2021 Questions