Free CXC Principles of Business Paper 1 January 2024 past paper from 2024. 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 2024 - Free CXC Past Paper with Answers
Free CXC Principles of Business Paper 1 January 2024 past paper from 2024. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
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Private enterprise is run MAINLY to
create profit
reduce inflation
provide jobs for more people
distribute goods and services fairly
Which of the following is NOT a function of money?
Medium of exchange
Measure of value
Store of value
Indivisibility
Which of the following forms of payment is considered legal tender?
Cheque
Bank note
Postal order
Money order
Which of the following statements is NOT true?
Public sector refers to government-owned businesses.
Public sector businesses are not required to pay taxes.
Private sector businesses are owned by individuals.
Private sector as well as public sector businesses provide employment.
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
Selecting the objectives and procedures for achieving goals is referred to as
motivating
controlling
organizing
planning
In which of the following categories would subsidized meals for employees fall?
Fringe benefits
Wages and salaries
Duty-free allowances
Workers' compensation
What leadership style does Mrs Lloyd employ?
Autocratic
Democratic
Charismatic
Laissez faire
Richard has been an employee of MTSL for over ten years. He is due for a promotion at the end of the year. However, 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
If employees are dissatisfied with working conditions, the trade union representative's FIRST action should be to
plan for strike action
have discussions with human resources
advise employees to adopt go-slow tactics
request a meeting with the board of directors
One way in which an entrepreneur contributes to economic development is by
creating jobs for citizens
importing goods from abroad
providing incentives for workers
encouraging trade unions to represent workers
In which of the following situations is collateral MOST needed?
Buying stocks and shares
Taking out an insurance policy
Borrowing from a financial institution
Ordering goods from a foreign manufacturer
An entrepreneur who wants to maintain control of a business would be advised to establish the business as a
sole trader
partnership
limited company
private limited company
Which of the following elements would NOT be included in a feasibility study?
Profitability
Ethical issues
Target market
Market demand
Which of the following is NOT an element of a business plan?
Legal plan
Financial plan
Marketing plan
Production plan
A 'purchase order' is a
request for additional goods
notification of goods received
statement of debts outstanding
document offering to buy goods
Which of the following statements represents a contract?
Mr Adams places a 'for sale' sign on his bike.
Seven-year-old Kevin sells his bike to Mr Adams.
Mr Adams sells a bike to seven-year-old Kevin.
Seven-year-old Kevin's mother buys a bike from Mr Adams.
In establishing a contract, 'invitation to treat' is often misinterpreted as
an offer
a breach
an acceptance
a counteroffer
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
Which of the following is NOT a characteristic of cottage industries?
Small-scale
Home-based
Mainly automated
Utilize mainly local raw materials
The location of an extractive industry is LEAST affected by
its proximity to large shopping areas
the presence of good roads and drainage
its proximity to sources of raw materials
the availability of an abundant labour supply
Which of the following types of capital is used for the day-to-day operations of a business?
Fixed
Floating
Nominal
Working
The amount of labour available for productive activity is known as the
labour force
labour movement
employment level
employment opportunity
Subsistence production is BEST described as producing goods for
profit
export
local trade
personal use
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
Which of the following is a MAJOR function of consumer organizations?
To act as price inspectors
To provide goods and services for consumers
To set price controls for certain commodities
To educate consumers about their rights and responsibilities
Which of the following gives identity to a specific producer's goods?
Label
Brand
Patent
Copyright
In which of the following types of trade is the hire purchase method of buying MOST likely to be used?
Retail
Import
Foreign
Wholesale
Which of the following factors is LEAST likely to influence consumer behaviour?
Price of substitutes
Spending patterns
Household size
Income
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 items would NOT be considered consumer goods?
Stocks of soft drinks for resale
Cars in a dealership waiting to be sold
Stationery used in the accounts department
Bottled water on the shelves of supermarkets
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
Reduction in prices to retailers
The hosting of annual sport events
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
KD's Car Dealership wants to transport car parts from Saint Lucia to Trinidad. Which of the following methods is BEST suited for transporting the car parts?
Air
Sea
Rail
Road
Which of the following sequences shows the correct order of the distribution chain?
I, III, IV, II
II, IV, I, III
III, I, IV, II
III, IV, I, II
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)
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
The acronym GPS stands for
global positioning system
global programming system
geographic positioning system
geographic programming system
An instruction given to a commercial bank to make regular payments of a fixed amount to a named person is called a
direct debit
credit transfer
standing order
letter of credit
Tina invests her savings by buying shares in a company. From this investment, Tina expects to receive
profits
interest
revenues
dividends
Which of the following financial records shows the assets and liabilities for John's Grocery Store?
Cash book
Balance sheet
Income statement
Cash flow statement
One of the MAJOR functions of a central bank is to
issue notes and coins
issue stocks and shares
accept deposit accounts
offer loans and advances
The central bank is owned and controlled by the
government
shareholders
public sector
country's citizens
Which of the following institutions facilitates the sale and purchase of existing securities?
Unit trust
Credit union
Merchant bank
Stock exchange
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
Subsidies refer to
taxes withheld by governments
loans given to small businesses
grants provided by governments
profits realized from investment
Which of the following forms of taxation can be classified as 'direct'?
Income tax
Excise duty
Purchase tax
Customs duty
Governments can encourage business activity by
reducing taxes
reducing grants
reducing spending
budgeting for a surplus
Education contributes to economic growth by ensuring that the workforce is highly
structured
classified
efficient
mobile
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
Inflation can BEST be described as
changes in the level of prices of goods and services
a fall in the level of prices of goods and services
a general and sustained rise in the level of prices
fluctuations in the general price level
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
The increase in skills and abilities as a result of education and training is referred to as
economic growth
economic development
technological competency
human resource development
Which of the following factors are LIKELY to affect the standard of living of a country?
I. A high crime rate II. A low literacy rate III. Reduction in resources
I and II only
I and III only
II and III only
I, II and III
The introduction of technology in the production process may affect society by
reducing the pollution of cities
reducing jobs for unskilled workers
increasing 'brain drain' in the economy
providing more jobs for unskilled workers
Which of the following methods can a government use to reduce unemployment?
Deflate the economy.
Increase income taxes.
Increase interest rates on borrowers.
Impose employment levies on firms.
A MAJOR function 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
Economic dualism refers to
uneven sectorial growth
advancement in technology
increased foreign investment
growth in the agricultural sector