Free CXC Principles of Business Paper 1 January 2025 past paper from 2025. 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 2025 - Free CXC Past Paper with Answers
Free CXC Principles of Business Paper 1 January 2025 past paper from 2025. 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
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
John owns a bakery and employs three bakers. He makes all the decisions and takes all the profits. What form of business does John own?
Sole trader
Partnership
Co-operative
Joint stock company
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
A firm that disposes of waste in an ethical manner is said to be demonstrating its responsibility to
society
customers
employees
governments
The role of the shop steward is to
take an inventory of stock
open the business place on time
ensure that consumers get a fair deal
protect the interests of unionized workers
Which of the following management functions is a manager engaged in when he grants a worker 'time off with pay'?
Planning
Delegating
Motivating
Supervising
This conflict is as a result of
unfair practices
a lack of job security
a lack of fringe benefits
poor working conditions
A laissez-faire leader can be described as one who
closely controls the activities of workers
allows subordinates to make their own decisions
makes decisions in spite of what others may think
listens to others and takes a reasonable view of the majority
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
In which of the following categories would subsidized meals for employees fall?
Fringe benefits
Duty allowances
Wages and salaries
Worker's compensation
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
advertise the company's products
organize the factors of production
prepare the company's accounting records
organize the marketing of the company's products
Which of the following are PRIMARY sources of information that could be used when conducting research for the establishment of a business?
I and II only
I and III only
II and III only
I, II and III
The condensed version of a 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
In establishing a contract, 'invitation to treat' is often misinterpreted as
an offer
a breach
an acceptance
a counteroffer
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 prevent(s) 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 businesses can be classified as a cottage industry?
JMN Superstore, located in a 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
In which of the following types of industries would the quarrying of limestone be classified?
Service
Extractive
Construction
Manufacturing
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
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
The term 'human resources' refers to
capital invested by shareholders in a company
materials and goods made by human beings
raw materials used in the manufacture of goods
persons available for productive and professional services
Primary production is concerned with the
distribution of goods
manufacture of goods
provision of raw materials
provision of goods for essential needs
Venture capital is BEST described as
machinery used in the operation of a business
assets that stay within a business for a short period
money used for the day-to-day activities of a business
money used for the start-up or expansion of a business
The PRIMARY function of advertising is to
promote brand loyalty
promote public relations
communicate information
ensure a wider distribution of goods
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 offering of free samples, coupons and gifts is an example of
loss leaders
sales promotion
public relations
personal selling
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 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
The type of sale in which a business retains ownership but allows customers to keep and use goods while paying for them in instalments is referred to as
credit
layaway
consignment
hire purchase
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 persons is NOT a retailer?
A seller of craft on the beach
A fruit vendor who has a cart by the roadside
An owner of a small grocery store on the corner
A hairdresser whose salon is located in a shopping centre
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 must be presented to a shipping agent to verify the ownership of goods and facilitate port clearance?
Invoice
Bill of lading
Delivery note
Bill of exchange
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 institutions is a financial regulatory body?
Credit union
Central bank
Building society
Commercial bank
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
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
A plan for systematic saving and spending is referred to as
trading
investing
financing
budgeting
Which of the following CANNOT be used as a source of capital to set up a business?
Equity
Club dues
Personal savings
Government grants
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
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
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 forms of taxation can be classified as 'direct'?
Income tax
Excise duty
Purchase tax
Customs duty
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 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.
Education could contribute to economic growth by ensuring that the workforce is highly
structured
classified
efficient
mobile
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 volume of production
a decrease in the level of employment
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 terms does NOT describe a type of unemployment?
Cyclical
Physical
Seasonal
Structural
Which of the following is an indicator of a country's standard of living?
Life expectancy
Diet and nutrition
Average disposable income of the population
Access to public utilities such as electricity and potable water
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
The buying and selling of goods and services among countries is called
balance of trade
international trade
balance of payments
international marketing
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