1 2 3. 4. Private enterprise is run MAINLY to (A) create profit (B) reduce inflation‘ (©) _ provide jobs for more people (D) distribute goods and services fairly Which of the following is NOT a funetion of money? (A) Medium of exchange (B) Measure of value (©) Store of value @) Which of the following forms of payment is considered legal tender? (A) Cheque (B) Banknote (©) Postal order (D) Money order Which of the following statements is NOT true? (A) __Publicsectorrefersto government- ‘owned businesses. (B) Public sector businesses are not required to pay taxes. (©) Private sector businesses are ‘owned by individuals. (B) Private sector as well as public sector businesses provide em- ployment. 5. 1. A postdated cheque is one which (A) is dated for payment at a future date (B) was written no longer than six months ago : (©) __ is dated to agree with the date of the document requesting payment (D) _ isdated by the bank on the day the ‘cheque is presented for payment ‘The MAIN objective of a trade union is to encourage the (A) unionization of workers (B) increase of salaries and vacations (©) advancement of the welfare of its members (D) firing of workers whenever they have problems at work Selecting the objectives and procedures for achieving goals is referred to as (A) motivating (B) controlling (©) organizing (D) _ planning In which of the following categories would subsidized meals for employees fall? (A) Fringe benefits (B) Wages and salaries (C) _ Duty-free allowances (D) Workers’ compen:10. 11. Item 9 refers to the following information. Mrs Lloyd, the manager of LM Ltd, holds regularstaffmeetingsto listen toideas from employees before making decisions that will affect the future of the company. ‘What leadership style does Mrs Lloyd employ? (A) Autocratic * (B) Democratic (©) Charismatic D) Laissez faire Richardhas been an employee of MTSL for overten years. He is due fora promotion at the end ofthe year. However, a manager’s nephew who was recently hired has been promoted ahead of Richard. An upset Richard has taken this issue to his trade union. This conflict is as a result of (A) unfair practices (B) _alack of job security (©) allack of fringe benefits (D) poor working conditions Ifemployees are dissatisfied with working conditions, the trade union representative's FIRST action should be to 6 (A) plan for strike action (B) have discussions with human resources (©) advise employees to adopt go- slow tactics (D) request a meeting with the board of directors 12, 13. 14. 15. 16. One way in which an entrepreneur contributes to economic development is by (A) creating jobs for citizens (B) importing goods from abroad © _ providi i (D) encouraging trade In which of the following situations is collateral MOST needed? (A) Buying stocks and shares (B) Taking out an insurance policy (C) Borrowing from a financial institu- tion (D) Ordering goods from a foreign manufacturer ‘An entrepreneur who wants to maintain control of a business would be advised to establish the business as a (A) sole trader (B) partnership (©) __ limited company (D) private limited company Which of the following elements would NOT be included in a feasibility study? (A) Profitability B) Ethical issues (C) Target market (D) Market demand Which of the following is NOT an element of a business plan? (A) Legal plan (B) Financial plan (©) Marketing plan (D) Production plan17. 18, 19. 20. A ‘purchase order’ is a (A) request for additional goods (B) notification of goods received (©) statement of debts outstanding (D) document offering to buy goods Which of the following represents a contract? statements (A) Mr Adams places a “for sale” sign on his bike. (B) Seven-year-old Kevin sells his bike to Mr Adams. (C) Mr Adams sells a bike to seven- year-old Kevin. (D) Seven-year-old Kevin's mother buys a bike from Mr Adams. In establishing contract, ‘invitation to treat’ is often misinterpreted as (A) anoffer (B)—abreach (©) an acceptance (D) counteroffer An essential feature of a valid contract is that (A) the offer has been made to the offeree (B)_ * the offer is made in writing by the offeror (C) a counteroffer has been made by the offeree to the offeror (D) the offer has been accepted by the offeree either in writing or orally a. 22, 23. 24, Which of the following is NOT a charac- teristic of cottage industries? (A) Small-scale (B) Home-based (©) Mainly automated B (D) Utilize mainly local raw materials The location of an extractive industry is LEAST affected by (A) its proximity to large shopping areas (B) the presence of good roads and drainage (©)__ its proximity to sources of raw materials (D) the availability of an abundant labour supply Which of the following types of capital is used for the day-to-day operations of a business? (A) Fixed (B) Floating (©) Nominal (D) Working The amount of labour available for productive activity is known as the (A) labour force (B) labour movement (C)__ employment level (D)__ employment opportunity Subsistence production is BEST described as producing goods for (A) profit (B) export (©) local trade (D) personal use21. 28. 29, Joel bought a dye factory because he wanted to ensure that he received a regular supply of dyes to make tie-and- dye scarves. In which type of linkage is Joel engaged? (A) Forward (B) Diagonal (C) — Backward @) Horizontal Which of the following outcomes 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 Which of the following is a MAJOR function of consumer organizations? (A) Toact as price inspectors (B) To provide goods and services for consumers (©) To set price controls for certain commodities {D) To educate consumers about their rights and responsibilities Which of the following gives identity to a specific producer's goods? (A) Label ®) Brand (© Patent (D) Copyright 30, 31. 32, In which of the following types of trade is the hire purchase method of buying MOST likely to be used? (A) Retail (B) Import : (©) Foreign (©) Wholesale Which of the following factors is LEAST likely to influence consumer behaviour? (A) Price of substitutes (B) Spending patterns (C) Household size (D) Income Price discrimination may BEST be defined as setting (A) a lower volume of goods at a higher price (B) a higher volume of goods at a lower price (©) the same price for different pro- ducts (D) different prices for the same pro- duct Which of the following items would NOT be considered consumer goods? (A) Stocks of soft drinks for resale (B) Cars in a dealership waiting to be sold (©) Stationery used in the accounts department (D) Bottled water on the shelves of supermarkets38. 36. 37. ‘Which of the following actions is LEAST likely to be described as good public rela- tions for a company? (A) Sponsorship of a steel band (B) The offering of scholarships (©) Reduction in prices to retailers (D) The hosting of annual sport events Which of the following documents, issued by acarrier, shows ownership of imported goods? (A)__ Bill of exchange (B) Letter of credit (©) Import ticence ©) _ Billoflading KD’s Car Dealership wants to transport car parts from Saint Lucia to Trinidad. Which of the following methods is BEST suited for transporting the car parts? A) Air (B) Sea © Rail (D) Road Item 37 refers to the following links in the ibution chain. 1. Wholesaler I. Consumer 1. Manufacturer IV. Retailer Which of the following sequences shows the correct order of the distribution chai 1, IIL, 1V, 11 1, 1V, 1, 1 Mm, 1, 1V, I MH IV, 1,1 a) ®) © @) 38. 39. 41. Which of the following types of providers are FedEx and DHL? @ (B) Third party logistics (3PL) (©) Fourth party logisties (4PL) (D) _ Fifth party logistics (SPL) A supply chain is BEST defined as the (A) storage of work-in-progress and finished goods (B) processing of raw materials and components into finished goods (©) __ network of resources involved in moving products from suppliers to customers (D) delivery of finished products from the point of origin to the point of destination ‘The acronym GPS stands for (A) global positioning system (B) global programming system (©) geographic positioning system (D) geographic programming system ‘An instruction given to a commercial bank to make regular payments of a fixed amount to a named person is called a (A) direct debit (B) credit transfer (C) standing order (D) letter of credit42, Tina invests her savings by buying shares ina company. From this investment, Tina expects to receive (A) profits (B) _ interest (©) revenues (D) _ dividends Which of the follwi shows the assets and Grocery Store? (A) Cash book (B) Balance sheet (©) _ Income statement (D) Cash flow statement ‘One of the MAJOR functions of a central bank is to (A) _ issue notes and coins ®) issue stocks and shares (©) accept deposit accounts (D) _ offer loans and advances The central bank is owned and controlled by the (A) goverment (B) shareholders (C)__ public sector (D)” country’s citizens Which of the following institutions facilitates the sale and purchase of existing securities? (A) Unit trust (B) Credit union (©) Merchant bank (D) Stock exchange 41. 48, 49. 51. investments can be defined as (A) assets that generate income (B) stock of goods available in a country © amount of money available at a given time (D) amount of capital owned by the ‘government Subsidies refer to (A) taxes withheld by governments (B) _ loans given to small businesses (C) grants provided by governments (D) _ profits realized from investment Which of the following forms of taxation can be classified as ‘direct’? (A) __ Income tax (B) Excise duty (C) Purchase tax (D) Customs duty Governments can encourage business activity by (A) reducing taxes (B) reducing grants (©) reducing spending (@) budgeting for a surplus Education contributes to econo! by ensuring that the workforce is (A) structured (B) classified (©) efficient (©) mobile55. Which of the following measures could be used to protect the environment? 1. Recycling Il, Deforestation II. Water conservation (A) Land only (8) Land It! only (©) Mand IM only ©) 1 Mandi Inflation can BEST be described as (A) changes in the level of prices of ‘goods and services (B) a fall in the level of prices of goods and services (©) ageneral and sustained rise in the level of prices (D) fluctuations in the general price level Export licences are issued MAINLY to (A) ®) © encourage local businesses to produce more goods for export enable the government to control the flow of goods being exported indicate to the importing country that the goods are of a high standard (D) indicate to the importing country the price at which the goods are to be sold The increase in skills and abilities as a result of education and training is referred toas (A) economic growth (B) _ economic development (C) _ technological competency (D) human resource development 56. 37. 59. Which of the following factors are LIKELY to affect the standard of living of a country? 1. Ahiigh crime rate I. A low literacy rate UI, Reduction in resources (A) Land ILonly (B) Land Ill only (©) Hand I only (D) 1, Mandi ‘The introduction of technology in the production process may affect society by (A) reducing the pollution of cities (B) reducing jobs for unskilled workers (©) increasing ‘brain drain’ in the economy (D) providing more jobs for unskilled workers Which of the following methods can a government use to reduce unemployment? (A) Deflate the economy. (B) _ Increase income taxes. (C) Increase interestrateson borrowers. (D) _ Impose employment levies on firms. A MAJOR function of CARICOM is to (A) allowmemberstatesto collaborate (B) foster intraregional trade and common services (C) encourage the transfer of technol- ogy within the region (D) allow for the unrestricted move- ‘ment of persons among the ter- ritories60. Economic dualism refers to (A) uneven sectorial growth (B) advancement in technology (©) __ increased foreign investment é (D) growth in the agricultural sector END OF TEST IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST.