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category of business is he working in?

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CSEC POB June 2004 P1
Ot240010/F2004

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10. MIS stands for 14. Wl1ich ofthe following policies adopted by
management is MOST LIKELY to ensure
(A) ManagementlnductionSystems worker morale?
(B) Managementlnformation Systems.
(C) ManufacturinglndicationSystems. (A) Employees should take part in
ID) Mannhcturinp: lnstP"~tional Systems decision-making on an ongoing
basis since every employee
has duties and responsibilities.
11. WhichofthefollowingisNOTaresponsibility (B) Supervisors should make decisions
ofmanagement to employees? when they have been directed to
do so by the general manager.
(A) Providingadequatewotkingfacilities (C) The general manager should make all
(B) Producinggoodsatreasonableprices the decisions because he is respon-
(C) Maintaining good communication sible for the performance of all
(D) Providing training employees.
(D) Decisions made by the top manager
and his advisers must be carried
12. The manager of ABC company has em" out by employees as directed to
barked upon sponsoring a school cricket team ensure that there will be no
in a Caribbean territory. Which responsibility break down in work procedure.
is the company fulfilling?

(A) Its obligation to maximise surpluses 15. .The MAIN function ofthe trade union is to
(B) ltsobligation to customers
(C) Its economic obligation (A) preventworkersfrom being dismissed
(D) Its social obligation (B) increase union leaders' popularity
(C) protect workers' rights
(D) train workers to be leaders
13. "The leader deliberately stands back and lets
the subordinates plan their own work and
make theirown decisions as far as possible." . 16 .. Which ofthe following describes an essential
feature of a valid contract?
Which word BEST describes the type of
administration referred to in the above state" (A) The offer has been communicated to
ment? the offeree.
(B) A counter offer has been made by
(A) Participative the offeree to the offeror.
(B) Laissez-Faire (C) The offer is made in writing by the
(C) Democratic offeror.
(D) Authoritarian (D) The offer has been accepted by the
offeree either in writing ororally .

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17. In a recent conversation Ann asked.Betty the 21. Which ofthe following' is a fixed asset for a
price at which she would sell a book. Betty business?
replied that she would sell it for $5.00., The
conver,ation ~or.ctituted (A) Bicycleforprivateusc
tB) Washingmachineiorresale
(A) a contract between the parties (C) Motorcarforfamilyuse
(B) an offerfromBettytosell the book (D) Motorlorry for delivery ofgoods
for $5.00 to Ann
(C) the sale ofthe book $5.00
(D) an enquiry and statement ofthe sell- 22. Whichofthefollowingareexamplesofservice
ing price of the book industries?

18. Felix Ward was offering his car forsaleat$ l 5 (A) Agriculture and construction
000. His friend, Frank Moore, stated that he (B) Banking and tourism
wanted the car and would pay $12 000. (C) Manufacturing and fishing
(D) Mining and transportation
Thi.s situation describes a

(A) contract 23. Primary production is concerned with the

(BJ statement ofintention
(C) counter-offer (A) distribution ofgoods
(D) misrepresentation (B) providing goods to meet essential
needs.
(C) provisionofrawmaterials
19. The money used for the day-to-day opera- (D) manufacture ofgoods
tions ofa business is called

(A) fixed capital 24." Which ofthe following are classified as pri-
(B) nominal capital mary industries?
(C) floating capital
(D) working capital I. Farming
11. Services (direct and commercial)
III. Manufacturing
20. What is the MOST LIKELY effect on a IV. Mining
developing economy when professional and
skilled labourmigrate to developed countries? (A) I and II only
(B) I and IV only
(A) Unskilled labourers can demand (C) II and IV only
'higher wages. (D) I, II, III and IV
(B) The demand for skilled labour and
professional services will decr¢ase. 25. Which of the following is an example of
(C) Unskilled labourers can work harder. extractive production?
(D) Production levels ofgoods and serv-
ices will decrease. (A) Agriculture
(B) Communication
(C) Manufacturing
(D) Tourism
SysTools PDF Watermark Demo Version ~."-

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26. Whichofthefollowingproductiveactivitiesis 31. Which ofthe following describes capital-il'.-

LEAST likely to be conducted on a large tensive industry?
scale in the Caribbean region?
(A) Capital and labour in the same
(.A~) !'ac1<:05E·:g pPJp01i;, 1P
(B) Mining (B) Large amounts of labour and very
(C) Whaling little capital
(D) Building (C) All capital and no labour
(D) Large amounts of capital and very
27. Which one ofthe following activities can be little labour
BEST carried out as a cottage industry?
32. Which ofthe following documents gives the
(A) Smeltingofiron ore name of the ship and full particulars of the
(B) Manufacturingofleathersandals shipment ofgoods?
(C) Refining ofpetroleum
(D) G:anningofpigeon peas (A) BillofSale
(B) BillofLading
28. Which ofthe following conditionswould co.n- (C) WayBill
stitute a Iinkage between two industries? . (D) Broker'sBill

(A) The output of one industry of the

33. A machine whose cash price is $700 was
economybecomestheinputofan-
boughtonhirepurchasefor$784. Thecostof
other industry.
credit was
(B) Twofirmsmanufacturesimilargoods.
(C) Two firms are responsible for the
(A) $ 12
manufacture of different kinds
(B) $ 84
ofgoods.
(C) $700
(D) One firm shares the use ofmachin-
ery with another firm. (D) $784

29. 'Mass production' refers to which of the 34. In which ofthe followingtypesoftradecan the
following? hire purchase method ofbuying be used?

(A) A nation's annual output ofgoods (A) Wholesale trade

(B) Goods used to produce other goods (B) Import trade
(C) Goods produced by nature (C) Foreign trade
(D) Goods produced in large quantities (D) Retail trade

30. In which ofthe following situations would the A person who handles goods in the intermedi-
35.
individualnamedhavelimitedliability? ate stage between the producer and the re-
tailer is referred to as a
(A) Tomwhohas200sharesinacom-
pany that produces beer (A) businessman
(B) Alfred who isrunningabusinessof wholesaler
(B)
his own (C) sole trader
(C) Mary who is canying on a hairdress- (D) commission agent
ing shop jointly with her sister
{D) Lucy whoownsaprivatesecretarial
school

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36. · Which ofthe following is NOT a function of 38. A post-dated cheque is one which
the retailer? ·
(A) was written no longer than six months

II (A)

((: /
Transporting goods to suitable Stor-
age facilities ·
p,.<~V iJi.,g ;.{ l~"J;:tl SUpplj Gf f;f•'.. d~
(8)
ago
is d.ated by the businessman to agree
v;ith th" elate of the dvcument re-
~ (C) Preparing goods for resale · questing payment
(D) Selling in small quantities (C) is dated by the bankdatesontheday
the cheque is presented for pay-
37. Which of the following documents w6uld ment
have been used by a ship owner who agreed, (D) is dated for payment at a future
fora sum ofmoney, toprovideashiptocarry date
ashipmentofcargo from one port to another?

(A) Import licence

(B) Billoflading
(C) Charter party
c0) Airway bill

Below is an illustration ofa cheque which has been returned by the bank as being
dishonoured.

·1
4th June 1987 •I 4th June 1987

:1 ABC Bank
:I Higlr Street
--,.....--:1 Low town
:I
I Joe Brown d
- - - - 1 Pay --~--- on or er
I ()()
. I _______
Seventy dollars x_x
1
I
$170.00 . I XJones
I

39. Which ofthe following BEST suggests the bank's reason for dishonouring it?

(A) The counterfoil has not been detached.

(B) The counterfoil has not been completely filled out.
(C) The amount in words and the amount in figures do not agree.
(D) Thesignatureis ilotl@gible.

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40. Whichofthefollowingisthequickestmethod 45. When the government deducts part of the

ofpayment for a businessman who is 20 000 workers' weekly or monthly salaries, the tax
kilometres away? is called

(A) Cash (A) income tax

(B) (.".0~"'T!?d )fl tax
'.B) Cheque
(C) Postal Order (C) capital gains tax
(D) Telegraphic money order (D) value added tax

41. The bank service which allows acustomerto 46. Which of the following forms of taxation
make payments by cheques is the could be classified as 'direct'?

(A) current account (A) Customs duty

(B) saviiigsaccount (B) Income Tax
(C) deposit account (C) Purchase Tax
(D) capital account (D) Excise duty

42. One ofthe major functions of a central bank 47. Which ofthe following BEST assists persons
is to in satisfying their basic needs?

(A) Money
(A) issue notes and coins
(B) Recreation
(B) accept deposit accounts
(C) Travel
(C) make loans and advances
(D) Education
(D) issue stocks and shares

48. When the demand for a commodity decreases

43. WhichofthefollowingCANNOTbeusedas
and the supply increases the price should
collateral forobtaining a loan from a financial
institution? · tA) increase
(B) decrease
(A) A mortgaged home with insurance (C) remain constant
coverage (D) exceed cost
(B) An insurancepolicywithacash vah1e
(C) Anamountinafixeddepositaccount
(D) Wive's/husband's legally owned prop- 49. Ifthere is a scarcity ofsupply in potatoes and
erty not covered by insuranC!" many people want to buy, the price is likely to
be

44. Which ofthe following types ofinsurance is (A) in equilibrium

agovemmentlikelytorequireeachemployed (B) variable
individual to pay? (C) low
(D) high
(A) Liabilityinsurance
(B) National insurance
(C) Life insurance
(D) Car insurance

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' Watermark Demo Version
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-8.

50. Barry decided to start his own clothing store. 54. Which bf the following is NOT a benefit of
Heishappyworkingforhimselfbecause . international trade?

(A) of the long hours helms to put in (A) Agreatervariety ofgoods is obtained
rB: anydecisionhemakescan be put into from overseas.
p. ··· · -~rnmediately rm Politicalli'.lks~redevelopedwithother

(C) hewantstowearbrandnamedothes. countries. "'

(D) he wants to meet many people (C) Import restrictions can be imposed
on foreign items.
(D) Producers are able to increase their
51. Which of the following measures must a market size.
country adopt to correct adverse Balance of
Payment problems?
55. A country has a favourable balanceoftrade
L Tariffs when
IL Quotas
Ill. Devaluation (A) it sells more than itbuys
IV~ Revaluation (B) it buys more than it sells
(C) there are no restrictions to trade
(A) I and II only (D) imported goods are cheaper
I (B) II and III only
'.,I (C)
(D)
I, Iii and IV only
I, II and III only 56. In trading, a licence involves having
!

52. When there is competition, the price of an (A) aspecificnumberofgoods to be sold

I articlewill depend on the (B) permission to bring in goods
l (C) money to be paid in foreign goods
(A) relationship between its de1mihdand (D) a ban on goods coming in to be sold
supply
(B) change in the cost 6fliving
(C) amount of money circulating in the 57. To correct an adverse balance of payments
country position, agovemmentmay
(D) changes in the value of money
(A) reduce income tax
(B) increase the money supply
53. Which ofthe following practices would NOT (C)' reduce credit
contributetotheeconomicdeveloprrientand (D) increase exports
growth ofa community?

(A) Increaseduseofthecountry'snatu- 58. Which ofthe countries listed below are NOT
ral resources full members ofCari com?
(B) Increased importation ofconsumer
goods (A) Barbados, Jamaica, Trinidad and
(C}. Provision ofloans and technical as- Tobago
sistance forestablishing loGal bµsi- (B) Antigua, St. Lucia, St.Vincent
nesses (C) Bahamas, Haiti, Surinam
(D) Provision ofmore infrastructure (D) Dominica, Grenada, Guyana
within the country

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59. Which of the following types of business 60. A nationalized industry is owned and control- .
environment is most typical ofthe Common- led by
wealth Caribbean area? ·
(A) local businessmen
(A) Corporate state (B) thei,c,vc1ncnent
(B) Mixed economy (C) theChamberofCommerce
(C) Centrally planned (D) the workers of the firm
(D) Perfectly competitive

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