CSEC Principles of Business Paper 1 May/June 2025 - Free CXC Past Paper with Answers

In which of the following types of economic systems does the government make all decisions?

Which of the following types of cheques allows an individual to receive cash on demand?

Starlet Products Ltd has produced a new brand of soap. Which department is suited for promoting the new product?

Private enterprise is run MAINLY to

distribute goods and services

provide jobs for more people

A public limited company is owned by

a board of directors

In a business, the term 'span of control' refers to the number of

persons in the organization

supervisors to whom a subordinate reports

subordinates for whom a supervisor is responsible

Which of the following is a form of industrial action in which trade unions are MOST likely to ask workers to participate?

The manager's approach to decision making could BEST be described as

Which of the following actions are characteristic of a good leader?

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

Worker's compensation

Which of the following is NOT a function of management?

Controlling the use of funds

Delegating work to subordinates

Coordinating the work of employees

Determining investment options for employees

Cash used to secure a loan at the bank is referred to as

The condensed version of the business plan, which provides an overview of the business, is contained in the

Which of the following is a regulatory requirement for an entrepreneur?

Using a credit card to transact business

Offering hire-purchase options to customers

Paying national insurance to the government

Advertising the business locally and regionally

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

Which of the following documents does a supplier send at regular intervals, to credit customers, giving details of purchases and payments made?

Statement of account

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

Offer and acceptance

A policyholder who is now making a claim did not disclose all the necessary information to his insurance agent when he insured his property. The legal action the insurance company can take is to

hold its agent liable because he was negligent

deem the policy void and refuse to pay the claim

determine how much should be deducted for the error

bear the responsibility of its agent and pay the claim fully

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?

Subsequent impossibility

Productivity can be measured by

$\frac{\text{Inputs}}{\text{Outputs}}$

$\frac{\text{Inputs}}{\text{Revenue}}$

$\frac{\text{Revenue}}{\text{Outputs}}$

$\frac{\text{Outputs}}{\text{Inputs}}$

Labour is BEST defined as the

ability to carry out management functions effectively

physical and mental capabilities used to perform tasks

level of skills training received by individuals who are working

total number of persons who hold jobs in government ministries

The type of production which deals with assembling and refining is referred to as

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

Which of the following activities can be BEST carried out as a cottage industry?

Smelting of iron ore

Refining of petroleum

Manufacturing of leather sandals

Which of the following industries is NOT developed from the natural resources of the Caribbean?

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

Jane has sought permission to prevent the local art gallery from reproducing and selling her paintings. This legal means of protecting her work is referred to as a

An advertisement which provides facts to highlight the features of a product is described as

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

point of sale displays

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

Which of the following scenarios represents a 'hire-purchase agreement'?

Paul leases a vehicle for three years.

Mark has a record player and plans to use it at dances for a fee.

John pays a deposit on a suit and will receive it after his final balance is paid in full.

Peter pays a deposit on a television, takes it home and completes the payments in monthly installments.

Rich Chocolates Ltd erected a tent in several supermarkets for the purpose of exhibiting all the company's products. This activity is referred to as

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

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 to 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

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

Movement to and storage of raw materials in the warehouse

Transformation of natural resources into finished products

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 documents details the name of the ship and full particulars of the shipment of goods?

Certificate of origin

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

Which of the following is a global logistics provider?

Tina invests her savings by buying shares in a company. From this investment, Tina expects to receive

One of the MAJOR functions of a central bank is to

give loans and advances

accept deposit accounts

issue stocks and shares

issue notes and coins

Which of the following accounts is NOT offered by commercial banks to the public?

Fixed deposit account

The central bank is owned and controlled by the

The stock market is associated with

rents and investments

premiums and rewards

Mia would like to protect her passport, birth certificate and jewellery. Which of the following commercial bank services should she use?

Night safe facilities

Automatic teller machine

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

Which of the following would NOT be considered a form of government assistance offered to a business?

Technical assistance

Subsidies and grants

Employment of workers

Training and human resource development

Which of the following statements accurately describes taxation as a means of redistributing incomes?

The rich pay taxes and the poor do not.

Tax is used to distribute income more efficiently throughout the country.

Tax is used to spread income evenly between higher and lower income earners.

Higher income earners are taxed at a higher rate so as to provide benefits to lower income earners.

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

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

Which of the following measures could be used to protect the environment?

I. Recycling II. Deforestation III. Water conservation

Which of the following actions taken 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

The provision of social services by a government does NOT include

education and training

transportation facilities

Which of the following indicators could be used to determine the standard of living of the citizens in a Caribbean country?

Access to public utilities

The rate of infant mortality

The level of consumption of goods and services

Education could contribute to economic growth by ensuring that the workforce is highly

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

The volume of all local production less profits sent back by non-nationals to overseas countries is termed

gross national product (GNP)

gross domestic product (GDP)

The buying and selling of goods and services among countries is called

international marketing

Computer-aided design (CAD) can be advantageous to

scientific calculations

CSEC Principles of Business Paper 1 May/June 2025 - Free CXC Past Paper with Answers

CSEC Principles of Business Paper 1 May/June 2025 Questions