GLOBAL TECHNOLOGY INC

END OF TERM EXAMINATION 2020

FIFTH FORM
PRINCIPLES OF BUSINESS
2 HOURS
ANSWER ALL QUESTIONS

1. Which of the following is NOT a function of

money? 6. Which of the following is NOT utilized by a
A. Indivisibility Management Information System (MIS)?
B. Store of value A. An integrated database
C. Measure of value B. Information flow between functional
D. Medium of exchange areas
C. Catering to the information needs of all
2. Which of the following BEST describes barter? levels of management
A. The process of exchange involving the D. Changing procedures to carryout tasks
use of money
B. Purchasing goods and services using 7. Selecting the objectives and the procedures for
cheques achieving goals is referred to as
C. The exchange of goods and services A. Planning
using notes and coins B. Organizing
D. The exchange of goods and services C. Controlling
without the use of money D. Motivating

3. The policies of a company are formulated by 8. A MAJOR role of a trade union is to encourage
the A. Employees to become members of the
A. Auditors union
B. Directors B. Employers to pay higher salaries and
C. Managers give longer vacations to staff
D. Shareholders C. Employees to strike whenever they
have problems at work
4. Private enterprise is MAINLY run to D. Advancement of the welfare of its
A. Create profits members
B. Reduce inflation
C. Distribute goods and services 9. The MAIN purpose of installing a suggestion box
D. Provide jobs for more people in a company is to get worker views about
A. Each other
5. The type of business environment MOST typical B. Other companies
of the Commonwealth Caribbean is C. Ways of improving the workplace
A. Corporate state D. Ways of improving economic
B. Mixed economy conditions
C. Centrally planned
D. Perfectly competitive 10. An entrepreneur may reduce his risk of loss by
A. Planning ahead
B. Securing bank loans
C. Cleaning offices regularly
 D. Purchasing additional fixed assets
11. Which of the following responsibilities must be
assumed by the management of a company?
I. Maximizing efficiently and
creating surpluses
II. Maintaining good
communication and human
relations
III. Producing goods of a marketable
quality
IV. Determining dividends to be paid
to shareholders
A. I only
B. I and IV only
C. I, II and IV only
D. I.II,III and IV
12. Management Information System (MIS) is
defined as the
A. Use of computer technology to gather
information for use in making decisions
within an organization
B. Technological benefits gained by an
organization for being part of a well
organized industry
C. Use of various factors within a business
to reduce costs and increase profits
D. Management process responsible for
identifying, anticipating and satisfying
consumer requirements at a profit
13. The MOST important use of collateral security
to the lender is that it
A. Can be sold if the borrower fails to pay
B. Gives the banker an idea of the stat of
the business
C. Establishes the financial position of the
borrower
D. Improves the borrower’s chance of
getting the loan
14. The condensation of a business plan is
contained in the
A. Feasibility plan
B. Marketing plan
C. Keynote summary
D. Executive summary
15. Which of the following describes an essential
feature of a valid contract?
A. The offer has been communicated to
the offeree.
B. A counter offer has been made by the
offeree to the offeror.
C. The offer is made in writing by the
offeror.
D. The offer has been accepted by the
offeree either in writing or orally.
16. A contract may be discharged by
I. Breach
II. Performance
III. Lapse of time
IV. Offer and acceptance
A. I and II only
B. III and IV only
C. I, II and III only
D. II, III and IV only
17. A purchase order is a
A. Request for additional goods
B. Notification of goods received
C. Statement of debts outstanding
D. Statement offering to buy goods
18. The money use for the day-to-day operations of
a business is called
A. Fixed capital
B. Floating capital
C. Nominal capital
D. Working capital
19. Which of the following is LEAST likely to result
from growth in an organization?
A. Greater productivity
B. More division of labour
C. Increased communication
D. Increased capital investment
20. Which of the following can have its shares
traded on the stock exchange?
A. A partnership
 B. A public company
C. A private company
D. A co-operative society
21. The term ‘human resources’ refers to
A. Materials and goods made by human
beings
B. Raw materials used in the
manufacture of goods
C. Persons available for productive and
professional services
D. Capital invested by shareholders in a
company
22. A MAJOR role a trade union is to encourage
A. Advancement of the welfare of its
members
B. Staff to become members of the union
C. Staff to strike whenever they have
problems at work
D. Management to pay higher salaries
and give longer vacations to staff
23. An entrepreneur who wants to maintain
control of the business would be advised to
operate the business as a
A. Sole trader
B. Partnership
C. Limited company
D. Private limited company
24. Which of the following is NOT a functional area
of a business?
A. Finance
B. Production
C. Public relations
D. Human resources
25. Which of the following statements BEST
describes an authoritarian leader?
A. Willing to take suggestions
B. Making decisions without consultation
C. Allowing workers to plan their own
work
D. Consulting those likely to be affected
by the decision
26. In establishing a contract, ‘invitation to treat’ is
often misinterpreted as
A. An offer
B. A breach
C. An acceptance
D. A counter-offer
27. Which of the following is a fixed asset?
A. Bicycle for private use
B. Motor car for family use
C. Washing machine for resale
D. Motor lorry for delivery of goods
28. Which of the following is the MOST popular
type of cooperative existing in the Caribbean?
A. Service
B. Financial
C. Consumer
D. Agriculture
29. A MAJOR function of the public sector is to
A. Inspire competition among businesses
B. Serve the interest of the shareholder
C. Serve the entire population
D. Make a profit
30. The PRIMARY role of the personnel department
of a firm is to
A. Hire, recruit, train and motivate workers
B. Promote recreational activities for
workers
C. Compile magazines highlighting
outstanding workers
D. Assist employees to understand
industrial relations
31. In a public limited company, the losses are
borne by the
A. Staff
B. Directors
C. Community
D. Shareholders
 C. I, II and III only
D. II, III and IV only
32. Which of the following characteristics of the
sole trader form of business enterprise is NOT 37. The factor of production which earns interest is
advantageous to the owner? A. Land
A. Secrecy B. Labour
B. Unlimited liability C. Capital
C. Ownership of all profits D. Enterprise
D. Low operational cost
38. Which of the following BEST describes capital as
33. Which of the following are functions of a factor of production?
business unit? A. Money
I. Production of goods and services B. Shares
II. Creation of jobs C. Machinery
III. Maximization of sales D. Debentures
IV. Education of workers
A. I,II and III only 39. A post-dated cheque is one which
B. I,II and IV only A. Was written no longer than six months
C. I,III and IV only ago
D. II ,III and IV only B. Is dated for payment at a future date
C. Is dated by the bank dates on the date
34. Which of the following is MOST likely to occur the cheque is to presented for
when a member of a partnership dies? payment
A. The business is closed down D. Is dated to agree with the date of the
B. A new partner is brought in document requesting payment
C. The government takes over the business
D. The business becomes a joint stock 40. Which of the following types of capital is an
company entrepreneur LIKELY use to start a business?
A. Fixed
35. Cash used to secure a loan at a bank is referred B. Venture
to as C. Working
A. Collateral D. Operating
B. Fixed assets
C. Current asset
D. Fixed deposit

36. Which of the following are functions of

management?
I. Co-coordinating the work of
employees
II. Delegating work to subordinates
III. Controlling employees and raw
materials
IV. Ensuring that employees join a trade
union
A. I and II only
B. II and III only
TOTAL 4O MARKS