Free CXC Principles of Business Paper 1 January 2023 past paper from 2023. 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 2023 - Free CXC Past Paper with Answers
Free CXC Principles of Business Paper 1 January 2023 past paper from 2023. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
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The type of business environment MOST typical of the Commonwealth Caribbean is
corporate state
mixed economy
centrally planned
perfectly competitive
A firm that disposes of waste in an ethical manner is said to be demonstrating its responsibility to
society
customers
employees
governments
Which of the following types of cheques allows an individual to receive cash on demand?
Open
Crossed
Certified
Banker's
Which of the following items are NOT considered to be 'consumer goods'?
Stocks of soft drinks for resale
Cars in a dealership waiting to be sold
Stationery used in the accounts department
Bottled waters on the shelves of supermarkets
Which of the following is a characteristic of the sole trader form of business which is NOT advantageous to the owner?
Unlimited liability
Low operational cost
Ownership of all profits
Rapport with customers
Characteristics of online communication include
I. instant feedback II. detailed messaging III. documented evidence
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
A MAJOR role of a trade union is to encourage the
unionization of workers
increase of salaries and vacations
advancement of the welfare of its members
sacking of workers whenever they have problems at work
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
Item 10 refers to the following information.
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
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 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.
One of the MAIN functions of an entrepreneur is to
advertise the company's products
organize the factors of production
prepare the company's accounting records
organize the marketing of the company's products
The MAIN benefit of collateral to the lender is that it
can be seized if the borrower fails to pay
improves the borrower's chance of getting a loan
determines the financial position of the borrower
gives the lender an idea of the state of the business
The condensed version of the business plan, which provides an overview of the business, is contained in the
marketing plan
feasibility study
keynote summary
executive summary
Which of the following variables is NOT an element of a feasibility study?
Profitability
Target market
Market demand
Business design
The monthly payments collected by an insurance company from its policyholders are known as
deposits
premiums
instalments
endowments
If Paula offers to sell Barry an umbrella for $50, but Barry offers to pay $40, this is an example of
an offer
a counteroffer
an agreement
an invitation to treat
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:
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
Which of the following is NOT a primary industry?
Mining
Fishing
Farming
Building
The factor of production which earns interest is
land
labour
capital
enterprise
Which of the following is NOT classified as a natural resource?
Sugar
Bauxite
Sunlight
Crude oil
The term 'economies of scale' refers to the
purchase of goods at low prices
increase in the size of a business
reduction in the size of a business
reduction in costs as output increases
Labour is BEST defined as the
ability to carry out management functions effectively
physical and mental capabilities used to perform tasks
level of training received by the employees of an organization
total number of persons who are employed in government ministries
Primary production is concerned with the
distribution of goods
manufacture of goods
provision of raw materials
provision of goods for essential needs
Which of the following are features of a cottage industry?
I. Family assistance II. Mass production III. Minimal investment
I and II only
I and III only
II and III only
I, II and III
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
Merchandising can BEST be described as
giving merchants goods on con- signment
training employees to conduct market research
counting stock for an electronic point of sale system
highlighting the physical and visual aspects of selling
Which of the following can be described as a marketing activity?
Issuing bulletins on staff matters
Distributing commodities to outlets
Advertising vacancies within the organization
Ensuring that workers are given fringe benefits
Which of the following situations is necessary for the existence of a market?
Government regulation
A face-to-face exchange
A fixed location for trading
Buyers and sellers interacting
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 activities carried out in a large firm will NOT be under the supervision of the marketing manager?
Packaging
Purchasing
Advertising
Distributing
Which of the following lists comprises the elements of the traditional marketing mix?
Product, price, promotion, place
Price, package, promotion, place
Product, promotion, place, package
Package, product, price, promotion
The acronym GPS stands for
global positioning system
global programming system
geographic positioning system
geographic programming system
Which of the following lists shows the correct order of the chain of distribution?
Consumer, retailer, wholesaler, manufacturer
Wholesaler, manufacturer, retailer, consumer
Manufacturer, retailer, wholesaler, consumer
Manufacturer, wholesaler, retailer, consumer
Which of the following types of providers are FedEx and DHL?
Second party logistics (2PL)
Third party logistics (3PL)
Fourth party logistics (4PL)
Fifth party logistics (5PL)
Which of the following documents, issued by a carrier, shows ownership of imported goods?
Bill of exchange
Letter of credit
Import licence
Bill of lading
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
network of resources involved in moving products from suppliers to customers
delivery of finished products from the point of origin to the point of destination
JB Auto Company decided to export car engines from Barbados to Trinidad. Which of the following methods is BEST suited for transporting the engines?
Air
Sea
Rail
Road
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 customers
I and II only
I and III only
II and III only
I, II and III
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
Financial investment can be defined as
assets that generate income
the stock of goods available in a country
the amount of money available at a given time
the amount of capital owned by the government
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
The central bank is owned and controlled by the
government
shareholders
public sector
country's citizens
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
Which of the following institutions facilitates the sale and purchase of existing securities?
Unit trust
Credit union
Merchant bank
Stock exchange
Which of the following activities is a function of a chamber of commerce?
Creating employment
Protecting the environment
Providing financial aid to hurri-cane victims
Advancing the interest of the busi-ness community
Tax paid on goods entering a country is referred to as
income tax
excise duty
customs duty
corporation tax
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
Which of the following objectives is an economic aim of government?
Increase the level of literacy.
Develop a proper legal system.
Stabilize the national currency.
Maintain an effective security force.
What is the MOST likely effect on a developing economy when professional and skilled labour migrate to developed countries?
Unskilled labourers may work harder.
Unskilled labourers may demand higher wages.
Production levels of goods and services will decrease.
The demand for skilled labour and professional services will decrease.
Governments can encourage business activity by
reducing taxes
reducing grants
reducing spending
budgeting for a surplus
An unemployment problem in developing countries with a large workforce may BEST be solved by an increase in
the levels of automation
the amalgamation of firms
labour-intensive production
capital-intensive production
Which of the following measures are 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
Item 57 refers to the following information.
KMD Enterprise is a clothing store with four branches. The management of KMD is trying to enhance its internal communication system.
Which of the following management information systems (MIS) is MOST appropriate for the buying and selling of goods?
Decision-making support
Transaction processing
Executive support
Office automation
A MAJOR function of CARICOM is to
allow member states to collaborate
encourage the transfer of technology within the region
allow for the unrestricted movement of persons among the territories
foster intraregional trade and common services
The buying and selling of goods and services among countries is called
balance of trade
international trade
balance of payments
international marketing
Which of the following practices would contribute to the economic growth and development of a country?
Increased importation of consumer goods
Decreased use of the country's natural resources
Export of skilled personnel to developed countries
Provision of loans and technical assistance for establishing local businesses