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FORIVr TP 2014227 rEsrcoDE 02133010

MAY/JUNE2OI4

CARIBBEATT ADVAI{CED
PROI':ICIENCY EXAIT{IIVATIONO
MANAGEMENT OTBUSUYESS
- Unit I _ paper 0l
I hour J0 m.huts

REo') THE FOLLOWING TNSTRUCTIONS

CAREFULLY.
'
l This test consists of 45 items'
You wiil have t hour
and 30 minutes b answer
2' In addition to this test booktet,
you shourd have an
them.
answer sheet
3. Do not be concerned that
the ansl sheet provides spaces
items in thistest. for morc answe* than
4. there are

ffi,:rufl,fr:*T*:#trj#,il:il,,:jff.^, (B), (c), (D). Read

each item
5' on your answer sheeg find the
correspol& ,: your item
having the same teneras
rd;;;ryou
"T_T.r^:lich
have
at the
and shade thc space
"r,o*I.-'r,oor, sampte item bcrow.
Sample ltem

which of the forfowing actions

cANNoT be taken by a hacte
union?
(A) Picket SamoleAnswer
(B) Strike
(C)
(D)
Go slow
Lock out
@@@o
The best answer to this item ,.Lock
is out,,, so answer spaco
(D) has been shaded.
6. ,lt9u want to changc your
r ver qr"wEr'
answer, oe
choice. sur to enas€ it compfetery
tre sur€
before you firf in your new
7.
,yfi J';,,T;:'$j:*i.a'gomit$;it n"su-ana *ork as quickry
Tj caretuily as you can.
nurnber or.oi.t and go on to the n* your""scorc
wirt bc thc total
.- 8. "irrilll-' "iJ.
=!! You may do any rough
work in this booklet
9. You may use silent
-
=!!
-a
non-programmable calculators
to answer guestions.
-t
I

-
rI
==
:tI Copyright @ 2Ol2 Caribbean
Examinations Council
All riohro r6caA,^r
 .2-
t. In which of the foltowing stages
production would thc bottlinjof
of W!i9h ofthe following is NOTa
classified?
;;; making tool?
decision

(A) Primary (A) Decision Trees

(B) Tertiary
(B) Market researph
(c) Secondary
(c) Cost BenefitAnalysis
(D) Subsistcncc (D) Criticd path Analysis (CpA)

2. WhichofthefollowingisLEASTliketyto 7. Which of th-e-fo-llowing organizational

contribute to economies of stnrcturcs is MOST tik"ly
scalei to-L aaoptea
by a multinational
(A) Finance "orpo.itio-nr*
(B) Marketing (A) Matrix
(C) Technology (B) Functional
(D) Competition I Geographical
(D) produci based

3: ".- Ft ""logicat obsolescence refers

to technology t. Which ofthefollowing
being isNOTliketyto be
considered a corporarc
oUjectivei'
(A) outdated
(B) inefficient tl] ,Corporate responsibititv
(c) expensive (B) profit distribution
(D) inappropriate (C) Survival
(D) Growth

Trade liben llwation maybe

BESTdescribd 9.
as the A firm pracdses ethical
bchaviour when it

(! free moyement of capial

(A) recalls a specific batch
ofproducts
q) removat of trading d;;," becausc of flaws in
fril--
(C) unresticted (B) pfaces rg-r:-*ptasis"
(Di il#;;;#:ffi:"ffij:
r

(C)
on social
responsibilities over profi
delays payrng its supplier
ts
in order
to improve its l;quidiry
porJiion
One feature ofa public
limited company is
(D) pays large sataries
to its exbcutives
that during a redundan"y
u*rr";*
(A) the shares arc haded on
the stock
exchanse
t0. Singh,s Engineering
Company and
(B) all transac-tions are made public Architectural firm trave Ram,s
aLciAJ ;';rt
to
(c)
the citizen
llg:lh.: gn ." soy:rnment projeci-to
all transactions are kept private
from the citizen
31yuct3
can
Ur;aee. Th is type
be referred to as a
of;*;;;r;,
(D) the owners of the factors
production
of (A) franchise
keep the information
to themsefves (B) parhership
(C) joint venture
(D) co-operative
 -3-
It. Which ofthe following is a feature
push inflation?
ofcost 15. A Caribbean lrpll*
been experiencing
a decline in
ib GDpfor f," p"r,;i;mondrs.
How would tnr economic
11]
(B)
High tevet ofwages
Lower cost of priduction local producers?
situation affect
(C) Increasedrnonrysu;t
(D) Increased demand O? (A) Improve relations between
iooas ana
services
(B) _ employers and employees
tr:19.Rrodo"t *,g, ro,
Aesign",
prooucts.
12. Which ofthe following (c) Increase output for goods
BESTexplains the and
costs of unemployment services.
to a country?
(D) Reduce demand forworkers.
A highty efficient workforce
!1]
(? An increase in Oreieril;;".
Which ofthe followingtheorisrc
9)
(D)
Incrpased costs for
fu ;;;; as the .Father or
is known
Reduced demand i"rl*iJ'r"o s"irnim" lir,rig#rit,z
services
(A) Elton Mayo
(B) Max WetL
W.hich of tho foltowing outcomes is !91 Fredrick Thytor
advantage of nade tiu".iliratio"zve 'r
anc&
(D) Douglas McGregor

(A) Infant industries becorne

more 17. Which_of tho following
competitive. is a non_financiaf
(B) A level playingfield is provided rcward?
for
allcountries
(C) Consumers are able to purchase (A) Gain sharinc
a
wider variety of goojs. Job enrichrn"ent
(D) 91
Localproducersareprotestcdfrom
unfair competition
):a
U))
LumP.sum bonuscs
Employees sbck ownership
pfan
(ESOP)

t4. Whichofthefollowing.isNOTachallenge
of gtobatization to c";bbea, 18. The flow of communiceti,'n;^ *--
;;;;'-"-" - matrix
in a
(A)
structune reflects ,n:lll*:""
Wider market access
(B) Increased competition (A) customers
(c) Removal of protectionist authority figures
(D)
policies
Confotmity to international 91
standards
l:/
(D)
management and customers
thefunction"r"orli-""grr.n,

19. Effective commun ication

is distorted when
(A) only the electronicmedium is used
(B) verbal and non-verbal
(c) .uo
body tanguage and intonadonJJJ
*
are
not aligned
(D) severaf types of media
are used to
comm un icate information
 -4-
20. Which concept the systenu approach
9f
classifi es an organization
o ." -J
24. Amanagerhastggfidewhotherhismiddte
another syst€m'? *Li---" within managen sho{! be
directly respon.iUf"
for four or
A
(B)
Synergy oqgan izatio,. ilT'_il.*f il:n::J:;
Subsysem
q) Open sysrem
!l] detegation ofduties
(D) Ctosed sysrem
1!) ctrain orcommanJ-
ql rever of hieraicf-
(D) span ofcontrrol
2t. Which of Maslow,s
hierarchy of needs
woutd ur oanniza1i"".
provides its workers
b.;;l'rrvjng'ir
with pcnsioi
i, 2s. Sandra and Soohia.work
ol.anrz department Thev in the same
are in confl ict as
(A) Social applying for the oost botfi are
ofsupervisor. Which
(B) Securiw oftlre fottowine irrtheMOsTtikely
(C) Self-estre€m ofthis conflict? sounce
(D) Physiological
Ill Compctition
perrcnatity
ofthe foilowing
\y! ctash
.mirt
be thc objective
is LEASTtikely to !:l
(D)
Difference in objectives
Breakdownin,JriuiLtion
or_-*p-lovJ
system? "iiirji*,
(A) To.regogniso ttre firarcneedsoftlre
26. y!:n rynagementafte.mpe to increase the
(B)
individuaf
To consider the devefopment
scope of a job by
task undertaken
brc:g€;";il;;;,
individual,s carcer
r----"!v.
ofthe
q'a -tne
be BESTI;;.''H.# " worker, this can
(C) To encourage and
support planned
chanees witlin rh;
;rg;;;;r- (A) job robtion
(D) To ideitify emptoyees job anatysis
in the It] job enrichment
organization *t o t
for advancement
p"t"nii"i
"""
1!l
(D) job enfargement

Which ofthe folfowing 27.

factors wiil
likety influence the ,a"i., MOST ]l|1n^autfrority is alivred to someone in
order for them b make
in advertising? "irJr..iJo be BESTclassified
decis,b;ilil;
as

(A) Cost (A) contrrol

(B) Cufturat bias (B) prcmodon
I9l Technicat jargon (C) organization
(D) Selective perception (D) empowermenr
 -5-
28. Employees at J and C company
complain about their managei
often 32. Which of the foflowing phnases
wiro aoes defines a debenture? BEST
not allow them to urp*rJ their
views
and feelings abouttrnal decisionrnrA,
Uy (A) A bank toanwith fixed
9::9lp*v. which of the roiio*ing i,
(B) A bngterm ro* *itr,irJ
interestrate
|IOSTlikely
the oqganization?
to be a causc of connict in
ratc
in*o
(C) A long torm loan with variable
intercst,ate
11]
(B)
Management sryte
Clash of personalitics (D) Ashor
(C) Lack ofcommunication oddtff"ffU#ePrinciPal
(D) Competition O. r".ru nesources

33.
.tifebtood_caplpt is often described as the
Y:*j"S
What is the HIGHEST tevel
in Abratram ofrtre u*in rr;.'wiih
fonowtng actions is LEAii of the
Maslow,s hierarchy of needs? li["iyt
in an increase in working ro"r,
upiliiz
(A) Social
(B) Safety (A) Increasing stock level
(C) Esteem (B) rncreasint",.diii;';;bmers
(D) Self-actualization (c) A mortca;.;;;;::::"
(D) ,;;#ff'.?'#H*H;[" .

Mary works in a small supermarket.

thinks the salary is atbacti", She 34. Which ofthe fot lowing
inveshlent appraisal
groupoffriends
*a.ni-- rL, methods uses prohts
-C". wi ratherthan cashfl ows?
r*r,-,r,i ;#T,*:TrH:ff *T Net present Value
lt i"l:nr,.rnging enough. bt"-i, U,i"fis e) payback
about leaving.
91 ]he Method
l:,
(D)
tnrernal Rate of Retum
According to Maslow, which Average Rate of Rearrn
following neasons BEsT'explah;
of the
desire to leave?
;;:,
JS. Which of the following ratios gives
a
measure of how ,rriry
(11 Social needs have not been Ousinrs;-.outa
(B) Higher order needs
met.
h"";;;;;;"
meet its short-term
debts " or;;ilil#",
satisfied.
(C) Lower order nceds have
(A) Gearinc
satisfied.
not been (B) Liquiditv
(D) Financial needs have not
(C) Efficiencv
satisfied
been (D) profitability

3t. J6. An example ofan intangible

yl,i* of the foilowing is an asset is
debt financing for a company? exampte of
(A) cash
(A) Stock issue
(B) a debtor
(c) goodwill
ltl
(C)
Debt factoring
Debenture issue
(D) a motor vehicle
(D) Retained eamings
 -6-
37. Tyco International, a public
limited 40.
company, intends to expand
into iu* Jhe..extract below was hken from the
Trading Account of
L1t$ within the next ri* rontir. ri" a b*;;;'*;;;*:
MOST tikety *u* oin ;d; ;;;;ri;; Openingstoc-
would be
Sales
$ 400
$t s00
(A) sale of assets Purchases
$r 000
(B) sale of shares $ 600
(C) bank overdraft
(D) issuing of debentures
The gross profit of
the firm is
(A) $ 2oo
(B) $ 600
J8.
lh* ltowilg information is
an exhact from (c) $t ooo
the firm, Ali and
20t3.
Sons f-rd, .t 3 it"rb", (D) $r 600
CurrentAssets $t60 000
41. Ptifbert Hardware
is finding it difficutt
term
Liabirities its weryday payments
!.ons izo,i fo1i ::jT_t over the
FixedAssets snort term. This me
crrnniil#riti", fttrffi Tanage this situatiofl:*.+e
firm can
the rof rowins techniqrug
The firmt capial ;jl'#;?ott "t
as at 3 | December
ts 20t3 (A)
(B) ,lcreasing debtor days
irg credit purchases
(A) $200 000
(c) lil,l* morc on a cash basis
(B) (D) :,l,ng
entering
$260000 overdraft
-._* adfiangcments
(c) $360 000 with 6ank_
(D) $500000
42. TheMA|Nobjectivc
to a businesr-i,
Ifem 30 rcfers
to the following table to;:mo"w*abmen*
an extraq from the which
;T.* 6kr.;#;:J
fii ;tri,T,H*ffiTffi"
Netcash
Tores paid
inn-Giiffin 3i :"Tf,ffi1'**Li.fiI#:il
R"yruntoff*ffi
lhars issued $f 9 000 Ie!&$ rcfers to the folfowing
sr3 000 hble.
Jr. The closing cash
balance is

(A) $ 2 000
(B) $26000
(c) $26ooo
(D) $40 000
43. The closing cash
balance is
(A) $ 2ooo
(8) $ 26 o0o
(c) $ 28 000
(D) $ 40 0oo
 -7 -
44.
.Wl,:h ofthe foltowing sources offinance
tikety to be used as investment The following information
i: a!!lST
rn new product devefopment? ---"v'.r the books of Sam peter,s was taken from
Business.
(A) Bank loan
(B) Debentures
floct at rstJanuary
(c) Share issues Wages
3 d0
(D) Bank overdnaft puritrases 4 5oo
Da:--
postage r,
lo00o
vuu
l5o
ctosinJ stock 23W

What is the cost of goods

sold?
(A) $ e 000
(B) $ e 300
(c) $10 600
(D) $to 7oo

END OF TEST

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