,
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-2-
Which of the following is NOT a function of
money?
(A)
(BJ
(C)
(D)
2.
Indivisibility
Store ofvalue
Measure ofvalue
Mediumofexchange
I.
II.
III.
IV.
Creation ofjobs
Education of workers
Maximization of sales
Production of goods and services
(A)
I, II and III only
I, II and IV only
I, ·m and IV only
II, III and IV only
(C)
(D)
5.
(A)
(B)
(C)
(D)
6.
Which of the following characteristics of the
sole trader form of business is NOT
advantageous to the owner?
(A)
(B)
( C)
(D)
Unlimited liability
Low operational costs
Ownership of all profits
Rapport with customers
Corporate state
Mixed economy
Centrally planned
Perfectly competitive
Which ofthe following responsibilities MUST
be assumed by the management of a
company?
I.
IT.
III.
IV.
(A)
(B)
(CJ
(D)
CSEC POB June 2011 P1
staff
directors
community
shareholders
Which of the following types of business
environments is MOST typical of the
Commonwealth Caribbean?
\
3.
Ip a public limited company, the losses are
borne by the
(A)
(B)
(C)
(D)
Which of the following are functions of a
business unit?
(B)
4.
Producing goods of a marketable
quality
Maximizing efficiency and creating
surpluses
Determining dividends to be paid to
shareholders
Maintaining good communication and
hnman relations with staff
II only
II and III only
II, III and IV only
I, II, III and IV
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-3-
Item 7 refers to the diagram below which shows a section ofa typical vertical organizational chart
for a manufacturing company.
[joARD OF DIRECTORsl
I_ MANAGING
DIRECTO~
GENERAL MANAGER
[ PRODU<;:TION MANAGER ]
7.
line
rank
sfuff
flow
Setting objectives and the procedures for
achieving goals are referred to as
(A)
(B)
(C)
(D)
10.
The PRIMARY role of the Human Resources
Department of a firm is to
(A)
motivating
controlling
organising
planning
(B)
(C)
9.
(D)
A MAJOR role of a trade union is to
encourage
(A)
(B)
(C)
(Dj
[QnEF ACCOUNTANT
The relationship between the highest level of
management down to the various departments
is known as the
(A)
(B)
(C)
(D)
8.
MARKETING MANAGER
staffto become members oftheunion
staff to strike whenever they have
problems at work
advancement of the welfare of its
members
management to pay higher salaries
and give Ianger vacations to staff
11.
hire_,, recruit, train and rnotivatc
employees
promote recreational activities for
employees
compile magazines highlighting
outstanding employees
assist employees in understanding
industrial relations
Which of the following organizations is
LEAST likely to use a Manangement
Information System?
(A)
(B)
(C)
(D)
A department store
The National Bank
A shoe-shine shop
A beauty supplies outlet
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-4 12.
Which of the following are functions of the
entrepreneur?
I.
II.
III.
IV.
(A)
(B)
(C)
(D)
Providing finance needed for
production
Co-ordinating the factors of
production
Undertaking risks by anticipating
demand
Ensuring that workers join a union
16.
An overview of a business plan is contained
in the
(A)
(B)
(C)
(D)
17.
I and II only
II and IV only
I, II and.III only
I, Ill and IV only
Which of the following factors prevents an
agreement from being considered a valid
contract?
(A)
(B)
(C)
(D)
Cash usell to secure a loan at the bank is
referred to as
13.
(A)
(B)
(C)
(D)
14.
18.
fixed deposits
current assets
fixed assets
collateral
\
(A)
(B)
(C)
(D)
A secretary who uses a computer
applicationtodoherjob
Afarmerwhousestheforktoplough
his land
An assistant who developed a
software application for his job
An employee who goes to work on
time and does his work well
(B)
( C)
(D)
19.
(A)
(B)
cc)
An entrepreneur may reduce his risk ofloss
by
20.
(A)
(B)
(C)
(D)
planning ahead
securing bank loans
cleaning offices regularly
purchasing additional fixed assets
deposits
premiums
instahnents
endowments
Which of the following desclibes an essential
feature of a valid contract?
(D)
15.
Consideration
Legal purpose
Misrepresentation
Offer and acceptance
The monthly payments collected by an
insurance company on behalf of its policy
ho Iders are known as
(A)
Which ofthe following situations illustrates
entrepreneurship?
feasibility plan
marketing plan
key note summary
executive summary
The offer has been communicated to
the offoree.
The offer is made in writing by the
offeror.
A counter offer has been made by
the offeree to the offeror.
The acceptance is made in writing to
theofferor
A post-dated cheque is one which
(A)
(B)
(C)
(D),
is dated for payment at a future date
'was wlittenno longerthan six months
ago
is dated to agree with the date ofthe
document requesting payment
isdatedbythebank'sdateontheday
the cheque is presented for payment
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-521.
·The money used for the day-to-day
operations of a business is called
(A)
(B)
(C)
(D)
22.
(C)
(DJ
23.
fixed capital
nominal capital
floating capital
working capital
Which of the following is LEAST likely to
result from growth in an organization?
(A)
(B)
26.
(A)
(B)
(C)
(D)
27.
Greaterprodnctivity
More division oflabour
Increased communication
Increased capital investment
WhatistheMOSTlikelyeffectonadeveloping
economy when professional and skilled labour
migrate to developed countries?
Which of the following factors does NOT
affect the supply of labour?
Which of the following is a product of the
manufacturing industry?
(A)
(B)
(C)
(D)
28.
(A)
Unskil!edlabourerswillworkharde~
(B)
(B)
Unskilled labourers will demand
higher wages.
Production levels of goods and
services will decrease.
The demand for skilled labour and
professional services will
decrease.
(C)
(D)
(D)
29.
In the Caribbean, many people are hired for
sugarcane farming and veiy little equipment
isused. TitisindustrycanBESTbedescribed
as
(A)
(B)
(C)
(DJ
labour intensive
capital intensive
having low capital input
having high capital input
(B)
(C)
(D)
30.
(B)
Which ofthe following factors ofproduction
ea!11s interest?
(A)
(B)
(C)
(D)
'
Issuing bulletins on staffmatters
Distributing commodities to outlets
Publicising advertisements for new
staff
Ensuring that workers are given
fringe benefits
communicate information
promote brand loyalty
ensure wider distribution ofgoods
promote public relations
Which ofthe following market situations is
typically found where there is alargenumber
ofproducers and consumers 0
(A)
25.
A car
Lumber
A house
The PRIMARY function ofadvertising is to
(A)
24.
Gold
Which ofthe following can be described as a
marketing activity?
(A)
(C)
Migration
Birthrate
Population census
School-leaving age
(C)
(D)
Imperfect market
Perfect market
Monopoly
Oligopoly
Land
Capital
Labour
Enterprise
.
.
.
.
.
.
.
OOONTOU!ENExl'PAGE .
c.
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Which ofthe following characteristics BEST
describes a perfectly competitive market?
31.
(A)
(B)
(C)
(D)
32.
33.
Fewsellersandmanybuyers
Difficult entry to new markets
Production ofalmost identical goods
Imperfect consumer knowledge of
prices
The price ofan item is usually high when the
numberof people wanting to buy it is
(A)
(B)
(C)
(D)
36.
~f 01n m vests his savings by buying .shares in a
company. From ibis investment, Tom expects
to receive
(A)
(B)
(C)
(D)
37.
Which of the following are responsibilities of
commercial banks?
large and the quantity forsale is small
large and the quantity for sale is large
few and.the quantity for sale is small
few and the quantity for sale is large
I.
II.
III.
IV.
Controlling the supply ofmoney
Offering loans to small businesses
Accepting deposits from customers
Acting as banlcers to the government
Which ofthe following is NOT a function of
the retailer?
(A)
(B)
(C)
I and II only
II and III only
I, II and III only
II, III and IV only
(D)
(A)
(B)
(C)
Selling in small quantities
Preparing goods for resale
Providing a local supply ofgoods
Transporting goods to suitable storage
facilities
(D)
~8.
One of the MAJOR functions of a Central
Bank is to
(A)
(B)
34.
I.
IL
III.
IV.
Cost
Brand
Protection
Attractiveness
(A)
I and III only
II a.-id IVoniy
III and IV only
I, II, III and IV
(D)
.
39.
,_,
. .
'
Investment can be defined as
(A)
(B)
.-{C)
(D)
the stock of goods in a country
.additions to the capital stock of a
country
the amount of money avaiiable at a
given time
the amount ofcapital owned by the
government
co:operative societles
Private companies
Public companies
Partnerships
.
'"l· _OI;wJOiMlloll .
.·
(D)
issue notes and coins
accept. deposit accounts
issue stocks and shares
make loans and advances
Which ofthe following can have their shares
ti:aded on the stock exchange?
(A)
(B)
(C)
(D)
1,_·,,
(C)
Whichoft.hefollowingMUSTbetakeninto
account when packaging goods for retail?
(B)
(C)
35.
profits
interest
revenue
dividends
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- 7 -
40.
Which ofthe following institutions are NOT
regulated by Central Banks?
42.
The term 'subsidies' refers to
. (A)
(B)
Credit unions
Stock exchanges
Commercial banks
Joint stock companies
(A)
(B)
(C)
(D)
(C)
(D)
43.
41.
Which of the foll owing graphs shows
regressive taxation?
(A)
O/o.
grants given by government
taxes withheld by g,ovemment
loans given to small businesses
profits realized from investment
Which ofthe foll owing measures are used by
government to redistribute income 7
Custom duties and levies
Consumption tax and tariffs
(A)
(B)
(CJ
FA Y--G an<l11alionain1::,u1an~e
(D)
Excise duties and value added tax
of
Tax
44.
0
(B)
Tax paid on wages and salaries is referred to
as
(A)
income tax
(B)
(C)
corporation tax
value added tax
consumption tax
(D)
\
%
of
Taxf--~--~~~~~~-
45.
Which ofthe following is NOT regarded as a
role oftaxation?
(A)
0
(B)
Income
(C)
(C)
(D)
%
of
Raising revenue for government
Influencing the distribution of inc~mes
and wealth
Influencing total expenditure on
goods aod services
Influencing the investment decisions
of publicly owned enterprises
Tax
~-.
46.
Which of the following forms of taxation can
be classified as 'direct'?
Income
(A)
(B)
(C)
(D)
(D)
Excise duty
Income tax
Customs duty
Purchase tax
. % ""
of
Tax
~
""
0
Income
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-8-
47.
\Vhich ofthe following institutions is involved
in protecting the consumer?
(A)
(B)
(C)
(D)
51.
Bureau of Standards
Forestry Department
IntemationalMonetaryFund(IMF)
Natural Resources Conservation
Authority (NRCA)
Which of the following is "10T a benefit of
international trade?
(A)
(B)
(C)
(D)
48.
A government can correct an adverse
foreign exchange problem by
(A)
( B)
(C)
(D)
implementing price floors
increasing customs duties
reducing severance payments
improving the rate ofinflation
52.
Export licences are issued MAINLY to
(A)
(BJ
49.
Which ofthe following are UK.ELY to affect
the standard ofliving in a country?
(C)
(DJ
I.
II.
III.
IV.
A high crime rate
A low literacy rate
Widespread pollution
Poor advertisements
(A)
(B)
(C)
II and III only
II and IV only
I, II and III only
II, III and IV only
\
53.
(D)
50.
Which ofthe following practices would NOT
contribute to the economic development and
growth of a country?
(A)
(B)
(C)
(D)
Increased importation ofconsumer
goods
Increaseduseofthecountry's natural
resources
Provision of more infrastmcture
within the country
Provision of loans and technical
assistance for establishing local
businesses
enable the government to control the
flow ofgoods being exported
encourage local businesses to
produce more goods for export
indicatetotheimportingcountrythat
the goods are of a high standard
indicate to the importing country the
price at which the goods are to be
sold
A country has a favourable balance oftrade
when
(AJ
(BJ
(CJ
(DJ
54.
Political links are developc,"d with other
countries.
Producers are able to increase their
market size.
Agreatervarietyofgoodsisobtained
from overseas.
Import restrictions can be imposed
on foreign items.
it buys more than it sells
itsellsmorethanitbuys
imported goods are cheaper
there are no restrictions to trade
The buying and selling ofgoods and services
among countries is called
(A)
(BJ
(C)
(D)
balance of trade
international trade
balance of payment
international marketing
OJ2A()OlOlF2011 .
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. 9.
Which of these methods can a government
use to reduce unemployment?
55.
(A)
(B)
(C)
(D)
56.
59.
Increases in income tax
Deflation ofthe economy
Employment levyonfums
Increased interest rates on borrowing
Which of the following are MAJOR
arguments in favour of free trade?
IV
Protectionism
Trade specialization
Increase in world output
Comparative cost advantage
(A)
(B)
II and III only
I.
II.
III.
To correct an adverse balance of payments
position, a government may
(C)
(D)
(A)
(B)
(C)
(D)
57.
reduce credit
increase exports
reduce income tax
increase the money supply
60.
Whicnofthefollowingtradingagreementsis
Barbados promoting when it sells furniture to
Jamaica.?
(A)
(B)
(C)
(D)
58.
CARI COM
NAFTA
GAIT
OECS
I and IV only
I, II and. III only
II, III and IV only
Which of the followmg countries are NOT
members of the Organization of Eastern
Caribbean States?
(A)
(B)
(C)
Anguilla, Grenada
Antigua and Barbuda
(D)
Dominica, St. Lucia
Barbados} Jamaica
\
Which of the following practices may be
MOST appropriate in solving the
unemployment problem in a developing
country with a large labour force?
I.
II.
III.
IV.
(A)
(B)
(C)
(D)
Increase in salaries
Increased mechanisation
Increase in vocational training
programmes
Greater production through
increased labour
...
Ionly
IandIIonly
II and III only
IIIand IV only
IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST.
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