6.
The relationship between the highest level of management and the various departments is known as
- (A)
line
- (B)
rank
- (C)
staff
- (D)
flow
Free CXC Principles of Business Paper 1 May/June 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 May/June 2023 - Free CXC Past Paper with Answers
Free CXC Principles of Business Paper 1 May/June 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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Which of the following departments is NOT a functional area of a business?
Finance
Production
Public relations
Human resources
Which of the following types of cheques allows an individual to receive cash on demand?
Open
Crossed
Certified
Banker's
In which of the following types of economic systems does the government make all decisions?
Mixed
Capitalist
Command
Subsistence
The legal responsibility of a sole proprietor to pay any money owed by the business is referred to as
risk
insurance
limited liability
unlimited liability
Which of the following is NOT a function of money?
Indivisibility
Store of value
Measure of value
Medium of exchange
The relationship between the highest level of management and the various departments is known as
line
rank
staff
flow
Which of the following is a form of industrial action in which trade unions are MOST likely to ask workers to participate?
Mediation
Bargaining
Arbitration
Work to rule
The type of leadership described in the statement above is
democratic
participative
laissez faire
authoritarian
Which of the following actions are characteristic of a good leader?
I. Inspires workers II. Delegates responsibilities III. Makes intelligent decisions
I and II only
I and III only
II and III only
I, II and III
Which of the following are benefits of online communication?
I. Provides evidence II. Allows for instant feedback III. Useful for detailed messages
I and II only
I and III only
II and III only
I, II and III
Under which of the following categories would subsidized meals for employees fall?
Fringe benefits
Duty allowance
Wages and salaries
Workmen's compensation
The MAIN advantage of collateral 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
The condensed version of the business plan, which provides an overview of the business, is contained in the
executive summary
keynote summary
feasibility study
marketing plan
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
business plan
market survey
feasibility study
research proposal
An entrepreneur may reduce his risk of loss by
planning ahead
securing bank loans
sponsoring community projects
purchasing additional fixed assets
The principle of insurance where individuals would be compensated for damages or losses incurred is referred to as
indemnity
proximate cause
insurable interest
the pooling of risks
Kevin sustained burns while at work in a local restaurant. Under which of the following insurance policies is he likely to be compensated?
Public liability
Fidelity guarantee
Property guarantee
Employers' liability
Which of the following factors prevent(s) an agreement from being considered a valid contract?
Consideration
Legal purpose
Misrepresentation
Offer and acceptance
Mr Jones offered to construct a house for Mr Johnson for the sum of $200 000. Mr Johnson accepted. When the building was near completion, it was destroyed by fire. Mr Jones decided to regard the contract as being discharged.
Which of the following principles BEST illustrates the termination of the contract?
Lapse of time
Mutual agreement
Discharge by breach
Subsequent impossibility
Which of the following activities can be BEST carried out as a cottage industry?
Canning of peas
Smelting of iron ore
Refining of petroleum
Manufacturing of leather sandals
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?
Fixed
Floating
Working
Nominal
Which of the following commodities is a product of the manufacturing industry?
A car
Gold
Bauxite
A house
Which of the following natural resources is NOT available in the Caribbean in commercial quantities?
Oil
Coal
Timber
Bauxite
Productivity can be measured by
Which of the following outcomes is LEAST likely to occur as a result of growth in an organization?
Greater productivity
More division of labour
Increased communication
Increased capital investment
Which of the following gives identity to a specific producer's goods?
Label
Patent
Brand
Copyright
Which of the following activities is an example of sales promotion?
Warehousing
Free sampling
Servicing goods
Gathering information
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
Which of the following factors is LEAST likely to influence consumer behaviour?
Product price
Brand loyalty
Quality of goods
Place of residence
In which of the following types of trade is the hire purchase method of buying MOST likely to be used?
Retail
Import
Foreign
Wholesale
In marketing, a 'market' is BEST described as
the reason for the elimination of barter
a situation in which buyers and sellers interact
a place where various types of fruits and vegetables are sold
the management process responsible for satisfying consumers' demands
The MOST suitable medium of advertising in an area with high vehicular traffic is
posters
magazines
newspapers
point of sale displays
In business, logistics 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
managing resources from the point of acquisition, storage, and transportation to their final destination
formulating a business idea, systematically gathering data, then following through to production
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
an agent
a broker
a retailer
a wholesaler
A global positioning system (GPS) provides
firms with the capability to manage their inventories and reduce expenses
satellite tracking services that can be used in commercial and personal applications
saving options to firms by increasing the efficiency of their management information systems
simulation services to help designers avoid waste by creating models to assist manufacturers in making business decisions
Which of the following documents details the name of the ship and full particulars of the shipment of goods?
Bill of sale
Bill of lading
Proforma invoice
Certificate of origin
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 a global logistics provider?
GIS
GPS
DHL
Portnet
Which of the following is a service provided by commercial banks?
Printing money
Selling stocks and bonds
Controlling the supply of money
Accepting deposits from customers
Tom invests his savings by buying shares in a company. From this investment, Tom expects to receive
dividends
revenue
interest
profits
Which of the following accounts is NOT offered by commercial banks to the public?
Trade account
Current account
Savings account
Fixed deposit account
Investment can be defined as
the stock of goods of 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 characteristics are associated with the stock market?
Costs and prices
Risks and benefits
Rents and investments
Premiums and rewards
Which of the following actions by a 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
A debenture holder is one who
is paid a fixed rate of interest if the company makes profits
must be paid any amounts owing to him in the following year
has first claim on any profits and is paid a fixed rate of dividends
is entitled to a fixed rate of interest whether or not the company makes profits
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
government
shareholders
public sector
country's citizens
Which of the following groups stand(s) to benefit MOST from a stable level of prices?
Firms
Society
Workers
Consumers
Which of the following forms of taxation can be classified as 'direct'?
Income tax
Excise duty
Purchase tax
Customs duty
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
Governments can positively influence business activity by reducing
taxes
grants
subsidies
expenditure
In Trinidad, Mrs Brown would be referred to as
a refugee
an emigrant
an immigrant
a travelling officer
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
Education could contribute to economic growth by ensuring that the workforce is highly
mobile
efficient
classified
structured
The MAIN purpose of CARICOM is to
allow member states to collaborate
foster intraregional trade and common services
encourage the transfer of technology within the region
allow for the unrestricted movement of persons among the territories
One economic solution to unemployment in the Caribbean is to
export more goods
reduce the birth rate
nationalize industries
encourage industrialization
Which of the following sequences represents the correct stages in the development of the CARICOM Single Market and Economy (CSME)?
Computer-aided design (CAD) can be advantageous to
distribution
production
market research
scientific calculations