BR (EaNMINSTEPLESSECNONE! [owerratacoqasccn "| restcone 01240010 FORM TP 2019108 | MAYHUNE 2019 CARIBBEAN EXAMINATIONS COUNCIL CARIBBEAN SECONDARY EDUCATION CERTIFICATE® EXAMINATION, PRINCIPLES OF BUSINESS Paper 01 ~ General Proficiency T hour 15 minutes 23 MAY 2019 (pam, READ THE FOLLOWING INSTRUCTIONS CAREFULLY. 1. This testeonsists of 60 tems. You will have ! hour and 15 minutes t answer them. 2. In additon o this test booklet, you should fave an answer sheet. 3. Bech item in this test has four suggested nswers letered (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 asthe answer you have chosen. Look atthe sample item below. ‘The money that a business receives from the sale Moco ne wea Sante ans mst (B) capital GO0e® fine (D) resources “The best answer to this item is “income”, s0 (C) has been shaded. 5. Ifyou want to change your answer, eras it completely before you Mil n your new choice 6. When you are told to begin. tun the page and work as quickly and as carefully as you ean. IF you cannot answer an item, go on o the next one. You may return to that item late. DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO. Copyright © 2018 Caribbean Examinations Council All ight reserved O1240010/MUICSEC 2019ype 45 Bieta voxrntity otasotepropitr T typiwal of “Te fly Bliy Money owed by the business is Which of the follow ‘cavironmnents is. MC Commonwealth Caribbean dovenibad as : LAY Comore state A) ith { (8) Mixed economy (Nason (©) Centrally planet 1) tte habatay (D) Perfectly competitive (1) aint al Which ofthe following is NOT a fimotion —S,— Puyate cate snp MAINLY 19 of money? (AL create pratt (A) Iodivisibilay (8) eace tlt (B) Store of vale ()distsbute gos (C) Measure of value (D) provide js tor (D) Medium of exchange 6, Selecting he objectives andthe procedures AMAIOR fnction ofthe public ctor for achieving goals is referred to 28 (a) planning (A) make a profit (B) organizing (B) serve the entie population (©) controling (C) serve he interests oftie shareholder (D) motivating (D) inspire competition among bust GOON TO THE NEXT PAGE Hr2soOLOANESEC 20193 x 2 refers tothe following diagram relating wo the structure of an organization, IA) Chieradvisor (B) Board of directors (©) Managing director (D) Human resouree manager Which of the following actions BEST 9. desribes an authoritarian leader? (A) Willing to tke suggestions {B) Allowing workerstoplantheirown ‘work (©) Making decisions without consultation (D) Consulting stakeholders who will be afected by decisions o12mnotaMNiCSEC 2019 Production Finance Manager Manager aR Purchasing Supervcor Supervisor ‘Which ofthe following positions would be BEST suited at X? Which of the following actions dessa strate the characteristics of goo ls 1 mt w ®) ©) 1) Inspices workers Dalegatesresponsiilitin Males intelligent decisinns and U only and 1 on andl only Eland GOON TO THE NENT IAG10. Which of the following are benefits of svrlten communication? t i iL w @) © 0 Fostant feedback Provides evidence Useful for desailed messages {and It only Io Hand IM only 1Mand 1 1, Uniler which ofthe Following categories ‘would subsidized meals for employees fll? (A) Fringe benefits (B) Duty allowance (C) Wages and salaries {D) Workmen's compensation a 12,” Which of the following is « regulatory issue for the enreproneu? (A) Using 2 credit card to transact business (B) Offering hice purchase options to (C) Paying national insurance 1 the ‘government (©) Advertising the business locally ‘and regionally 13. Cash used to secure a foan atthe bank is referred to 08 (A) collateral (&) fixed asses (©) current assets (D) fixed deposits orz40ptoMUCSKC 2019 14, 15 6. ‘Theeotene serra he busines plan is cota the w @) CC) Keynote summary (D) executive summary ‘An analysis ofthe viability ofa business idea and an examination of the different aspects of operating a business is known (A) business plan (8) market survey {C) feasibility study (©) research proposst ‘An entrepreneur may reduce his risk of loss by (A) planning ahead (B) securing bank loans (C) sponsoring community projects (D) purchasing additional fixed assets {em 7 refers to the following case Molissa, «teenager, wanted to eam extra income, so she offered to wash cars forS10. Miss Hinds brought her carro be washed. Melissa washed the car snd Miss Hinds paid er $15. What pe of contract is demonstrated in the case above? (A) Sociat (B) Simple (C) Business (D) Specialty GO ON TO THE NEXT PAGEnt of 19. ‘Accontract may be discharged by (A) breach: (B) change of mind (©) inconsideration (D) —miseppropriation Which ofthe following facwrs preven(s) _anagreementfombeing consilered valid contract? (A) Consideration (B) Legal purpose (©) Misrepresentation (D) Offerand acceptance ‘The monthly payments made to an Insurance company by its policybolders are known as (A) deposits (®) premiums (©) instalments (0) endowments Which ofthe following conditions would constitute inkage between wo industries? (A) Two firms manufacture similar soods. (B) One firm shares the use of machinery with another im. (©) ‘Two firms are responsible forthe manufictureoféiffereatkindsof ood (D) The output of one industry of the ‘economy becomes the input oF another industry 22, 23 24, Which of the following types of capital ts use fr the day-to-day operations of a Har Fixed cB) Floating KC) Working (D) Nominal ‘To which ofthe following industries does firm involved in food processing belong? (A) Service (8) Extractive {C) Construction (D) Manufacturing Which of the following results is LEAST likely to oceu from growth inant organization? (A) Greater productivity (B) Greater division of labour {C) Increased communication (D) Increased capitl investment Productivity can be measured by Inputs A) Butpurs Inputs (B) Revenve © Outputs (D) Tapas GO ON TO THE NEXT PAGE:26. 2 2, 2, Which of the following businesses may EST be clasiied as a cottage industry? “ ® © o Mary's Cratt Supplies, located at home IMN Superstore, located in a rural Peter and John’s company, located in Jamaica People's Cooperative Bank, located in Trinidad ‘The amount of labour available for productive activity is known as w @ © oO ‘employment labour force labour movement cicency of lebour “The BEST modiuin of advertising for an area with high vehicular trafic i w 1B) © @) posters ‘magazines newspapers point of sale displays “The term “loss leader’ is BEST described sea product whieh w B © wo has no seal market value the retailer is unable to locate the retiler gives away customers {ssold cheaply to atract customers Product, pri promotion and place are ‘components of a w @ © o market study marketing mix market retearch sales promotion 3 2 a M4. 35, situation wher business guinsedi space without having 0 pay Tort sca (A) public (B) marketing (©) advonising {D) discounting Which ofthe following isle NOTa terms of sale? (a) Cash (B) Credit (©) Shares (D) Hire purchase Which ofthe following gives idantity to @ specific producer's goods? (A) Label (B) Patent (©) Brand (©) Copyright Which of the following factors is LEAST likely to influence consumer behaviour? (A) Product price (B) Brand loyalty {C) Quality of goods {D) Place of residence ‘Which ofthe following documents shows ‘ownership of imported goods? (A) Billoflading (B) Import licence (©) Leteroferedit (D) Bill ofexchange GO ON TO THE NEXT PAGE36, aw Join operates a shop in his community. 39 He buys goods in bulk rom a neacby supermarket and sells them in small ‘quantities to his customers. John would be referred to 28 (A) anagent (B) abroker {C)aretailer {D) awholesaler 40. Investment can be defined as ay ) © ) the stock of goods of a countey the amount of money available at agiventime additions tothe capital stock of ‘country theamountofcapitalownedbythe 41 ‘government Logistics in business is defined as “wy 6) © © managing date from conception prolctionandstorgeto retrieval using all systems to move an idea from conception to production sand then sales formulating @ business idea, systematically gathering data, then following through with production managing tesources from the point af acquisition, storage and transportation to their final Sestnation 48 Auto Company decided to export car engines from Barbados o Trinidad. Which of the following methods is BEST suited for transporting the engines? (a) air B) Sea (©) Rail (D) Road A stock market is identified with (A) costs and prices (B) —Fisks and benefits (©) reatand investment (©) premium and reward Which ofthe following isthe Binal step in s aupply chain operation? (A) Transformation of natural resources int finished products (B) Movement to and storage of saw materials in the warehouse (©) Processing of raw materials and ‘components into fnished goods (D) Delivering the finished product from point of origin to point of destination GOON 10 THE NEN Pai42. A global positioning system (GPS) provides (A) firms with the capability 10 manage their inventories and reduce expenses (B) _satelltewrackingservcesthateanbe ‘sed in commercial and personal applications (©) saving options to firms by inereasing the efficiency of their management information systems (©) simulation services to help esignersavoid wasteby creating ‘models assist manufactuersin ‘making business decisions 43, Mrdoneshas several bills of fixed amounts to pty each month, Mr Jones made an rangement with his bank 19 make these ‘monthly payments from his account. This service, provided by the bank, is refered (A) anoverdratt (B) axed deposit (©) astanding order (©) aleter of eeait 44. Which of the following forms of taxation can be elasified as ‘direct? (A) Income tax {B) Excise duty (©) Purchase ax {D) Customs duty a 1anotomavesre 2019 45, 46, " 48, A debenture holder is one who (A) ispaida fixed rate of interest ifthe company makes profits (B) myst be paid any emounts owing ‘to himin the following year (C) has firstclaim on any profits andis ‘aid a fixed rate of cividends (©) isentiled to axed cate of interest ‘whether or not the company makes profits Government offersubsidiesto busnessesto (A) increase the price of imported goods (B) _increasecostsand ultimately prices (C) ec costs and ultimately prices (D) force them to pay corporation tx (One of the MAJOR funetions of a central bank Ist (A) issue notes and coins (B) issue stocks and shares (C)_sscept deposit accounts (D) make loans and advances Which ofthe following is NOT a source of Jncome for an individual who eagages in personal budgeting? (A) Salaries card (B) Loan repayment (C) _fiverest rom savings (D) Dividends From investments GO ONTO THE NEXT PAGE,49. ‘The central bank is owned and controlled by the w ® © o government shareholders public sector ‘country’s ctizeis 50, Education contributes to economic growth by ensuring that dhe workforce is highly (A) mobile (B) ficient (©) classified (D) structured SL, The suecess of a government's economic policiescan be MOST effectively measured by (A) _anincrease inthe level of policies (B) sninereaceinthe standard of ving {C) a decrease in the level of employment (D) a decrease in the volume of production 52. Which ofthe following measures are used by governments to redistribute income? w ® © oO Custom duties and levies Consumption tx and tars AYE and national insuronce Excise duties and value added tax 53, The buying and selling of goods and services among countries is called rr) ®) « wD) Dalance of teade international trade balance of payments + international marketing dL MonONUIESEC 2009 5, 37 Wheto the to 1A) Teaming employes (B) —_Devaluing lncal carey (©) Increasing espa Ls (D) Increasing insure pres ‘The term “economic dulisn” desis a {economy in which one sexta ts w @ © co) highly dependent on foc capital highly dependenton foreign capital ‘overpopulated while the other is nderpopulated technologically advanced whilethe others technologically retarded Which ofthe following measures are used to protect the environment? i uu w @ © 1D) 5 Detieestation Water conservation Land I only {and I only Wand oly 1 Mand “The MAIN purpose of CARICOM isto w B © © allow memberstatesto collaborate Foster interregional trade and encourage the raster of technology ‘within the region allow for theuntestricte ‘of persons among the teaories GOON TOTHE NTS TINGcs 59, A price control” may be defined as (A) taxon goods and services (B)_govemment ban on imports 210 (©) _grantgiven a producers to reduce thei prices (D) goverment limit On the price oF -oods a services Which of the following. when incre sed would NOT contribute to the improved standard of living of country? (A) Capital goods (B) Disposable income (C} The country's population (D)_Aninvestment in wehnology BND OF TEST Which of the following organizations would settle dispute among banana- producing counties of the Caribbean and Central America over a preferential agree ment with the European Union? (A) World Trade Organization (WTO) (B) Caribbean Development Bank «cbB) (C) CARICOM Single Market and Economy (SME) () Organization of Petroteum Exporting Counties (OPEC) 18 YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST. ‘1240010/MJICSEC 2019