— Tay 808) - Answers Which of the following departments is NOT a functional area of a business? (A) Finance (B. Production Public relations (D) Human resources Which of the following types of cheques allows an individual to receive cash on demand? Open ) Crossed (C) Certified (D) Banker's A MAJOR function of the public sector is to (A) make a profit GBD serve the entire population (C) _ servetheinterests of the shareholder (D) inspire competition among businesses Which of the following are key features of a planned economy? 1. Centralized production. I, Citizens" welfare is primary. Mm, Little government interference. Jand I only (B) Land Hl only (C) Hand Ht only (D) 1, Wand IT Which of the following is NOTanexample of an unethical business practice? (A) Money laundering (B)___ Nonpayment of taxes Retrenching inefficient workers (D) Use of misleading advertisements Selecting the objectives and the procedures for achieving goals is referred to as G@)»» planning (B) organizing (©) controling (D) motivatingItem 7 refers to the following diagram of the structure of an organization, Which of the following positions would be BEST suited at X? Chief advisor Board of directors {€) — Managing director (D) Human resource manager Item 8 refers to the following statement. 9 Which of the following actions demon- strate the characteristics of a good leader? “The leader deliberately stands back and lets the subordinates plan their own work 1. Inspires workers and make their own decisions as far as Il. Delegates responsibilities possible.” Ill. Makes intelligent decisions The type of leadership described in the (A) Land ttonly ‘statement above is (B) Land Ill only 4 Hand Ill only (A) democratic @ 1. Mand 1 participative authoritanan:12 13. Which of the following are benefits of written communication? 1. Instant feedback I, Provides evidence IIL, Useful for detailed messages (A) Land tt only (B) Land If only Mand IIL only (D) Land iit Inwhich ofthe following categories would subsidized meals for employees fall? @ Fringe benefits (By Duty allowance (©) Wages and salaries (D) Workmen's compensation The MAINadvantage of collateral security to the lender is that it (A) determines the financial position of the borrower (B) _ givesthe lenderan idea of the state of the business (C) _ improvesthe borrower'schance of getting a loan @ ‘can be seized if the borrower fails to pay . Which of the following are examples of secondary sources of data? 1. Company records I. Former employees I. Government census & Land Il only Vand It only (C) Mand Itt only (D) Mand I 1s. 16. Whichof the following isa regulatory issue for the entrepreneur? (A) Using a credit card to transact business (B) Offering hire purchase options to customers (C)__ Advertisingthe business locally and regionally & Paying national insurance to the government ‘An analysis of the viability of a business idea and an examination of the different aspects of operating a business is known asa (A) business plan (B) market survey @ feasibility study (D) research proposal An entreprencur may reduce his risk of loss by oD planning ahead securing bank loans (C) sponsoring community projects (D) purchasing additional fixed assets20, hem 17 refers to the following case. Melissa, a teenager, wanted to carn extra income, so she offered to wash cars for S10, Miss Hinds brought her car to be washed. Melissa washed the car and Miss Hinds paid her $15. What type of contract is demonstrated in the case above’? (AL Social > Simple T) Business (D) Specialty in sustained bums while at work at a local restaurant. Under which of the following insurance policies is he LIKELY to be compensated? 7) (B) Fidelity guarantee Property guarantee Employers’ liability Which of the following is NOT a legitimate way of terminating a contract? (A) Breach (B) Performance Lapse of time Change of mind Which of the following factors prevent(s) anagreement from being considereda valid contract? (A) Consideration Legal purpose Misrepresentation ) Offer and acceptance 2. 22. 24. & (B) ‘Theterm ‘division of labour’ can be defined as the (A) __ organization of tasks in production assembling of goods for distribution separation of tasks to complete a job employment of different types of workers (D) Which of the following LEAST affects the location of an extractive industry? Proximity to large shopping areas Y Availability of an abundant labour supply (©) Proximity to sources of raw materials (D) The presence of good roads and drainage Which of the following types of capital is used for the day-to-day operations of a business? (A) Fixed (BY Floating Kay Working 1D) Nominal Which of the following commodities is a product of the manufacturing industry? Acar Gold (C) Bauxite (DD) Ahouse25. 26. 21. Which of the following condit constitutea linkage between twoindustries? (A) —‘Dooindustries manufacture similar Hoods (B) One industry shares the use of machinery with another industry. (C) Two industries are responsible for the manufacture of different kinds of goods. ‘The output of one industry of the ‘economy becomes the input of another industry. Productivity ean be measured by Inputs (AY Outputs Inputs_ (8) Revenue Rew Outputs Inputs The amount of labour available for productive activity is known as employment @& the labour force (©) efficiency of labour {D) the labour movement The inventor of a new oyster opener has the legal right to be the sole producer of this product. This is known as a patent {B) copyright (C) franchise (D) trademark 30. mM. B. ‘of the following activities isan mple of sales promotion’? (A) Warehousing ( Free sampling } Servicing goods (D) Gathering information Product, price, promotion and place are components of a A) market study marketing mix (©) market research (D) sales promotion situation where a business gains editorial space without having to pay for itis called WG y publicity (B) marketing © (D) discounting In which of the following types of trade is the hire purchase method of buying MOST likely to be used? G@® Rewait (B) Import (C) Foreign (D) Wholesale Which of the following factors is LEAST likely to influence consumer behaviour? (A) Product price Brand loyalty Quality of goods Place of residence3s 37. ‘The MOST suitable medium of advertising in an area with high vehicular traffic is posters (B) magazines (C) newspapers (D) point of sale displays 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 «C) Rail (D) Road John operates a shop in his community. He buys goods in bulk from a nearby supermarket and sells them in smail ‘quantities to his customers. John would be referred to as (A) anagent ad a broker a retailer {D) a wholesaler Which of the following documents shows ‘ownership of imported goods? Bill of lading {B) Import licence (C) Letter of credit (D) Bill of exchange a Logistics in business is defined as (A) managing data from conception, production and storage to retrieval (B) using all systems to move an idea from conception to production and then sales (©) formulating a business ide systematically gathering dats, then following through with production Seat meee loadin point of acquisition, storage and transportation to their final destination Which of the following is the final step in « supply chain operation? (A) Transformation of natural resources into finished products (B) Movement to and storage of raw materials in the warehouse (C) 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 is NOT a type of account offered by commercial banks to the public? @ ‘Trade account ‘Savings account (C) Current account (D) Fixed deposit account Which of the following is a service provided by commercial banks? (A) Printing money (B) Selling stocks and bonds (G4, Controlling the supply of money 2 —————Aa. Whichofthe following isa global logistics 47. One of the MAJOR functions of a central provider? bank is to (A) GIS @ issue notes and coins (By GPS ) issue stocks and shares © DHL (C) accept deposit accounts Portnet «D) make loans and advances 43. Which of the following character associated with the stock market? 48. Governments offer subsidies to businesses to A) Costs and prices force them to pay corporation tax Risks and benefits reduce costs and ultimately prices (©) Rents and investments (©) _ increasecostsand ultimately prices (D) Premiums and rewards (D) _ inereasethe price of imported zoods 44. Investment can be defined as 49. ‘The central bank is owned and controlled by the (A) theamount of capital owned by the government G) government (B) the amount of money available at (B) —_ sharcholders agiven time (C) public sector additions to the capital stock of a (D) country’s citizens country (D) the stock of goods of a country 50. Viood of the following is a function of a ber of commerce? (Deomale: wher est 45. Which of the following is NOT a source of “ot ah business. coyrmnuni wt) (A) Creating employment : Protecting the environment CH Assisting in securing markets for products A Salaries eamed y Loan repayment (D) Providing financial aid tohurricane 7 Interest from savings victims (D) Dividends from investments $1. Which of the following forms of taxation 46. Which of the following actions by a can be classified as ‘direct’? government is MOST likely to lead to an improvement in the standard of living? @) “income tax (B) Excise duty (A) Printing more money (©) Purchase tax Increasing the income tax rate (D) —_ Customs duty Abolishing taxes on low incomes )) Giving tax incentives to businesses:53. 55. Which of the following measures are used by governments to redistribute income? (A) Custom duties and levies ) Consumption tax and tariffs PAYE and national insurance (D) Excise duties and value-added tax. Governments can positively influence busi- ness activity by reducing. @ xs (B) grants (C) subsidies (D) expenditure Item $4 refers to the following information. Mrs Brown receives a job offer from a company in Barbados. In order to take up the job, she decides to leave her home country of Trinidad and move permanently to Barbados. In Trinidad, Mrs Brown would be referred toas (A) arefugee BY ancmigrant (C) an immigrant (D) __atsavelling officer One economic solution to unemployment in the Caribbean is to (A) (B) increase exports reduce the birth rate 56. 7. @® The gross national product (GNP) of a country is the total (A) value of goods and services avait- able in the country in a given period value of goods and services produced by the country in a given period (C) income earned in the country in a given period less capital consumption (D) income earned in the country less incomes payable outside the country ‘The MAIN purpose of CARICOM is to allow member states to collaborate foster interregional trade and (C) _encouragethe transferoftechnology within the region allow forthe unrestricted movement of persons among the territories (D) ‘price control” may be defined as a (A). taxon goods and services (B) government ban on imports (C) grant given to producers to reduce their prices. @ government limit on the price of goods or servicesWhich of the following represents the correct stages the development of the CARICOM Single Market and Feonomy (CSME)? (A) CARIETA, Federation —o CARICOM —> (B) CARIFTA) — CARICOM —® Federation a & Federation —® CARIFTA —® CARICOM —* S Federation —# CARICOM —e® CARIFTA —# 60. Uncmployment caused by a downturn in the economy 1s referred 10 as (A) structural (B) frictional c ‘seasonal DP) cyclical