TE STCODE
FORM TP 2020030
01240010
JANUARY 2020
C A R I BBE A N
EXAMI NA T I O NS
CO UN CIL
CARIBB EANSE COND ARY E DU CATION CERTIFI CAT E®
EXAMINATION
PRINCIPLES OFBUSINESS
Pap e r 01
- General Proficiency
1hour15 minutes
( 07 JANUARY 2020 (p.m.) )
READ THE FOLLOWING INSTRUCTIONS CAREFU LLY.
1.
This test consists of 60 items. You will have 1 hour and 15 minutes to answer them.
2.
In addition to this test booklet, you should have an answer sheet.
3.
Each item in this test hos four suggested answers Jette1ed (A), (B), (C), (D). Read each item you
are about to answer and decide which choice is best.
4.
On your answer sheet, find the number which corresponds to your item and shade the space having
the same letter as the answer you have chosen. Look at the sample item below.
Sample Item
The money that a business receives from the sale
of goods or services is called
(A)
( B)
(C)
(D)
assets
capital
income
resources
Samt?leAnswer
@®�@
The best answer to this item is "income", so (C) has been shaded.
\. .
5.
If you w�nt to change your answer, erase it completely before you fill in your new choice.
6.
When you are told to begin, tum the page and work as quickly and as carefully as you can. If you
cannot answer an item, go on to the next one. You may return to lhat item later.
DO NOT TURN THIS PAGE U NTIL YOU ARE TOLD TO DO SO.
Copyright© 2019Caribbean ExaminationsCouncil
All rights reserved.
0124001O/J/CSEC 2020
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-2-
1.
Pl'ivatc enterprise is run MAINLY to
(A)
(B)
(C)
(D)
2.
5.
create profit
reduce inflation
provide jobs for more people
distribute goods and services fairly
A postdated cheque is one which
(A)
is dated for payment at
date
(B)
was written no longer than six
(A)
(B)
(C)
(D)
recruit qualified employees
promote recreational activities for
workers
6.
assist employees in understanding
industrial relations
produce magazines highlighting
months ago
is dated to agree with the date
of the document requesting
(D)
payment
is dated by the bank on the day the
cheque is presented for payment
The M AIN objective of a trade union is to
encourage the
(A)
outstanding workers
(B)
(C)
3.
Which of the following is NOT a function
of money?
(B)
Medium of exchange
Measure of value
Store of value
(D)
Indivisibility
(A)
(C)
4.
(D)
7.
(A)
(C)
(D)
Mixed
Planned
C apitalist
Subsistence
have problems at wo1k
· In which of the following categories
(A)
(B)
(C)
(D)
8.
Fringe benefits
Duty allowances
Wages and salaries
Workmen's compensation
Which of the following phrases BEST
describes an authoritarian leader?
(A)
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unionization of workers
increase of salaries and vacations
advancement of the welfare of its
members
firing of workers whenever they
would subsidized meals for employees
fall?
In which of the following types of economic
systems does the state own and conti ol all of
the country's economic resources?
(B)
future
(C)
The MAIN role of the human resource
depa1tment of an organization is to
a
Willing to take suggestions
(B)
Making decisions without consul­
tation
(C)
Allowing workers to plan their
own work
(D)
C onsulting those likely
affected by decisions
to
be
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-3-
9.
Characteristics of written communication
include
Which of the following is NOT an element
of a business plan?
1.
II.
III.
documented evidence
detailed messaging
(A)
Legal plan
Financial plan
instant feedback
(B)
(C)
(D)
Production plan
(A)
I and II only
I and III only
Il and III only
(B)
(C)
(D)
10.
13.
14.
I, II and III
(A)
(B)
he grants a worker 'time off with pay'?
(D)
(A)
(C)
(D)
(C)
Delegating
Motivating
15.
nephew who was recently hired has been
promoted ahead of Richard. An upset
Richard has taken this issue to his trade
union.
of the MAIN
entrepreneur is to
(C)
(D)
16.
unfair practices
a lack of job security
(C)
(D)
p1epare the accounting records
advertise the company's product
·organize the factors of production
organize the marketing
company's product
of
the
.
,,
Profitability
Target market
Market demand
Business design
poor wo1king conditions
Which of the following is an example of
Joe rents
A contract may be discharged by
I.
II
III.
\
(B)
an
a lack of fringe benefits
an entrepreneur?
(A)
of
Which of the following variables is NOT
(A)
17.
12.
functions
an element of a feasibility study?
(B)
(D)
current accounts
One
(B)
This conflict is as a result of
(B)
(C)
fixed capital
fixed deposits
Supervising
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
(A)
collateral
Plarming
(A)
11.
Marketing plan
Assets used to secure a loan at the bank
a1e referred to as
Which of the following management
functions is a manager engaged in when
(B)
'
an
breach
lapse of time
offer nnd acceptance
office space.
Roger goes to the bank to get a
loan.
(A)
(B)
(C)
Sally occasionally babysits
neighbour's child.
her
(D)
Donna operates an online bakery
(C)
(D)
I and II only
I and III only
II and III only
I, II and Ill
from her home.
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-4-
18.
The monthly payments collected by an
insurance company from its policyholde1s
are known as
(A)
(B)
(C)
(D)
22.
(A)
(B)
deposits
premiums
instalments
endowments
(C)
(D)
23.
19.
An essential feature of a valid contract is
that
(A)
(B)
(C)
(D)
20.
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 offerer
the offer hns been ncccpted by
the offeree either in writing or
orally
(D)
24.
(C)
(D)
21.
Accepted the offer
A greed to a contract
Made a counter offer
Made ao invitation to treat
25.
(A)
(B)
(C)
(D)
Greater p1oductivity
More division of labour
Increased communication
Increased capital investment
What type of capital is defined as money
used for the day-to-day operations of a
business?
(A)
(B)
(C)
Which of the following businesses can be
classified as a cottage industry?
Forward
Diagom1l
Backwmd
Horizontal
Which of the following outcomes is
LEAST likely to result from growth in an
01ganization?
(A)
(B)
(C)
(D)
Which of the following phrases BEST
describes Miss Maraj's action?
labour force
labour movement
employment level
employment opportunity
Joel bought a dye factory because he
wanted to ensure that he 1cccivcd a
regular supply of dyes to make tie-and­
dyc scarves. In which type of linkage is
Joel engaged?
(A)
(B)
(C)
Mr John offered his car for sale for
$70 000. Miss Maraj said thnt she would
pay him $66 000 for it.
(A)
(B)
amount of labour available for
productive activity is known as the
The
(D)
Fixed
Floating
Nominal
Working
JMN Superstore, located in the
rural area
Mary's Craft Supplies, located at
Mary's home
Peter and John's Company,
located in Jamaica
People's
Bank,
Cooperative
located in Trinidad
01240010/J/CSEC 2020
26.
Subsistence production is BEST described
as producing goods for
(A)
(B)
(C)
(D)
profit
export
local trade
personal uso
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-5-
27.
Primary produclion is concerned with the
31.
Which of the following gives identity to a
specific producer's goods?
(A)
(B)
manufacture of goods
provision of raw materials
(D)
provision of goods
essential needs
(C)
28.
distribution ofgoods
to
(A)
(B)
meet
(C)
(D)
Which of the following can be described
32.
as a marketing activity?
(C)
Distributing commodities to outlets
Publicizing advertisements for new
stafI
Issuing bulletins relating to staff
(D)
Ensuring that workers are given
(A)
(B)
(B)
(C)
(D)
Which of the following elements comprise
(A)
Price, public, promotion, place
Product, price, promotion, place
(C)
Product,
place
(D)
Packaging,
price
promotion,
product,
(B)
packaging,
promotion,
34.
30.
Sponsorship of a steel band
The ofe
f ring of scholarships
Hosting of annual sport events
Reduction in prices to retailers
Merchandising can BEST be described as
(A)
the marketing mix?
(B)
Copyright
fringe benefits
33.
29.
B rand
Patent
Which of the following actions is LEAST
likely to be described as good publjc
relations for n company?
(A)
matters
Label
Price discrimination may BEST be defined
giving merchants goods on consignment
·training employees
market research
to
conduct
(C)
counting stock for an electronic
point of sale system
(D)
highlighting the physical
visual aspects of selling
and
The PRJMARY function of advertising is
to
as setting
(A)
(B)
(C)
(D)
a lowei- volume of goods at a
a higher volume of goods at a
, products
diITerent prices
·
product
for
for
promote brand loyalty
(C)
(D)
communicate information
(B)
higher price
lower price
the same ptice
(A)
promote public relations
ensure a
goods
wider distribution of
different
the
same
35.
Which ofthe following is NOT part of the
distribution chain?
{A)
Manufacturer
(C)
( D)
C ontractor
Retailer
(B)
Wholesaler
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-6-
36.
Which ofthe following modes oftranspo1t
is BEST suited for moving large amounts
of long haul cargo?
(A)
(B)
(C)
(D)
37.
(B)
(C)
(D)
(B)
(C)
(D)
(A)
(C)
(D)
42.
2PL
3PL
4PL
SPL
(A)
43.
(B)
(C)
{D)
storage of work-in-progress nnd
finished goods
processing of raw materials and
components into finished goods
delivery of finished products from
the point of origin to the point
ofdestination
system of organizations and
resources involved in moving
products from suppliers to
customers
issue notes and coins
issue stocks and shares
accept deposit accounts
make loans and advances
A plan for systematic saving and spending
ii; referred to as
{A)
(B)
(C)
(D)
44.
an increase in the level of policies
an increase in the standa1d of
living
a decrease in the level of
employment
a decrease in the volume of
production
One of tho MAJOR functions ofa central
bank is to
(B)
(C)
(D)
A supply chain is BEST defined as the
(A)
40.
Bill of exchange
Letter of credit
Import licence
Bill of lading
The success of a government's economic
policies can be MOST effectively
measured by
(B)
Which ofthe following types ofproviders
are FedEx and DHL?
(A)
39.
Sea
Rail
Road
Pipeline
Which ofthe following documents shows
ownership of imported goods?
(A)
38.
41.
trading
investing
financing
budgeting
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·
(A)
(B)
{C)
(D)
overdrafts
acting trustees
standing orders
letters of credit
The acronym GPS stands fo1
(A)
(B)
(C)
(D)
global positioning system
global programming system
geographic positioning system
geographic programming system
0124001 O/J/CSEC 2020
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-7-
Which of the following is NOT a source of
income for an individual who is engaged
in personal budgeting?
45.
(A)
(B)
(C)
(D)
46.
1
government
shareholders
public sector
country's citizens
50.
III.
(A)
(B)
(C)
(D)
Controlling the supply ofmoney
Offering loans to small businesses
Accepting deposits from customers
(A)
(B)
(C)
(D)
51.
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
012400 I O/J/ CSE C 2020
I.
rr.
Ill.
Recycling
D cforestation
Water conservation
(A)
(B)
(C)
(D)
I and II only
I and III only
II and Ill only
I, II and Ill
Which of the following objectives is an
economic aim ofgovernment?
CD)
52.
Increase the level ofliteracy.
Stabilize the national currency.
Develop a proper legal system.
Maintain an effective security
force.
Which' of the following activities is a
function ofa Chamber of Commerce?
(A)
(B)
(C)
I and II only
I and III only
II and ill only
I, II and In
Financial investments can be defined as
the
Which ofthe following measures could be
used to protect the environment?
(A)
(B)
(C)
(D)
Which of the following services are
provided by commercial banks?
I.
II.
48.
Salaries earned
Loan repayment
Interest from savings
Dividends from investments
The central bank is owned and controlled
by the
(A)
(B)
(C)
(D)
47.
49.
C 1eating employment
Protecting the environment
Providing
financial
aid
to
hurricane victims
Advancing the interest of the
business community
Which ofthe following measures are used
by governments to redistribute income?
(A)
(B)
(C)
CD)
C ustoms duties and levies
C onsumption tax and tarifsf
PAYE and national insurance
Excise duties and value added tax
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- 8-
53.
Tax paid on goods entering a country is
referred to as
(A)
(B)
(C)
(D)
54.
(A)
(B)
income tax
excise duty
customs duty
corporation tax
(C)
(D)
force them to pay corporation tax
reduce costs and ultimately prices
increase costs and ultimately
prices
increase the price of imported
goods
58.
Which of the following methods can a
govemment use to reduce unemployment?
59.
(C)
(D )
(A)
(B)
(C)
(D)
56.
A MAJOR function of CARlCOM is to
Governments offer subsidies to businesses
to
(A)
(B)
55.
57.
Increase in income tax
Deflation of the economy
Increase
interest
rates
on
borrowers
Impose employment levies on
firms
(A)
(C)
(D)
(D)
(B)
(C)
(D)
Caters to the information needs of
all levels of management
greater
flexfoility
Provides
through an integrated database
Allows the flow of information
between functional meas
Changes the proccdm·cs used Lo
carry out tasks
uneven sectorial growth
advancement in technology
increased foreign investment
growth in the agricultural sector
The buying and selling of goods and
services among countries is called
(A)
(B)
(C)
Which of the following functions is NOT
applicable to a management information
system (MIS)?
(A)
Economic dualism refers to
(B)
60.
allow member states lo collaborate
foster interregional trade and
common services
of
encourage
the
transfer
technology within the region
allow
for
the
unrestricted
movement of persons among
tenitories
balance of trade
international tt ade
balance of payments
international marketing
The introduction of technology in the
production process may affect society by
(A)
(B)
(C)
(D)
reducing pollution of cities
providing more jobs for unskilled
workers
reducing jobs for unskilled
workers
increasing 'brain drain' in the
economy
END OFTEST
IF YOU FINISH BEFORE TIM:E IS CALLED, CHECK YOUR WORK ON THIS TEST.
01240010/J/CSEC 2020