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Per
1 June 2007
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1.
Which options BES'I representthe ohjectives
of the CSME?
I. Politicalintegration
ll. Common external taritl
TII. Frcc movement of
PeoPle
IV. Free movement of caPital
(Ai lll and lV onlY
(B) I, Ill and IV orrlY
(C) II, III and IV only
{D) I, fI, lll and IV
(iol'ernrnent's pay.ment, to a domestic
producer. in the fonn of a tax relief is known
AS
(A) quota
(B) tariff
(C) subsidy
(t)) corporate tax
In a planned ecorlomy, the government may
seek to correct market failures bY
(A) advertising reform
(B) offering welfare benefits
(C) making ectxomic decisions
(D) ralioningthc supPlY of goods
Caribbean privatc scctor organiTstions are
largel;- intluenced b;- their
(A) conccrn for the t'lora and fauna
(t]) desire to sun'ive or gain high profits
(C) desire to lunction in an open honest
m:r[ner
(D) desire to correct inequities in pay
packages
Which one of the f<rllowing BESI' explains
the term' privatization' ?
(A) The selling of government assets to
a private business
(B) BusinessesoperatingprivatelY
rvithout starc interference
(C) The transfer of ownershiP from
public sector to
Private
entity
(D) When a business, public or private'
' decidcs to keeP decisions secret
'l'he
ability of a registered company to enter
in a contract is bascd on the corrtpatrl''s
(A) iimitedliabihlv
(l]) iegal personaliry
(C) articles of incorPoration
(D) memorandum of association
The mission slatement of an organization
defi nes the organ ization's
( A) purpose and direction
(B) strategic objectives
(C) long-temr goals *'hich it hopes to
achieve
(D) strategic. tactical and operatiorral
objectives
One advantage of a nrixed economy is that
(A) the state pr<rvides public g<rods
(B) there is no wasteful comPetition
(C) thc price of all goods is dictated by
rnarket lorces
(D) the private sector provides essential
sen'ices for consumers
5.
ft,
t-
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9. Which one of the following is a feature of
10.
co$push inflation?
Which of the following are benefits of
Caribbean-based multinational companies?
(A)
(B)
(c)
(D)
Hi$ levelofwages
Lower co$ ofproduction
Increase inthe money supply
Increased demand for goods and
serrices
t.
II.
IU.
IV,
Reduced imports
Increased productivity
Repatiation ofprofits
Creation of employment
(A) I and [V only
(B) III and [V only
(C)
L II and III only
(D) I[, il, and tV only
IlelaEAL. la referto the networft diagram below.
ll The critical path is 13. The duration of the CPA is
(A) 16 day's
(B) t7 days
(C) 21 days
(D) 28 days
(A)
(B)
{c)
(D)
A-C.D.F
A-C.E-F
A-B-D-F
A.B.C.D.E.F
12. In which of the following activities can work
be delayed?
(A) BandDonly
(B) CandEonly
(C) A, C, E, and F
(D) A, B, D and F
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l4 St. Nolbs, a Caribban Island, has beon
experiencing a dccline in its GDP for the past
six months. How would this economic
situation afFect local producers?
(A) Reduce demand for workers
(B) Extend product range for designer
products
(C) fncrease output for goods and
services
(D) lmprove relations bt\neen
employers and employees
How would tlritish tourists r:rvelling to
Paradise Island be recorded in the Balance
of Payments of Paradise tsland?
(A) Increa-se in visible trade
(B) f)ecrease in visible trade
(C) Increase in invisiblc trade
iD) Decrease in invisible trade
An organizational struchrre which is'task'or
'projct' focused is said to be
(A) marrix
(B) functir:nal
(C) concentric
(D) hierarchical
'I'he
assignment of tasks, grouping of 'tasks'
into departments and allocating ofresources
are the management function of
{A)
leading
(B) plaruring
iC) orppnizing
(D) conrrolling
Which one of the following theorists referred
to man as an "Economic Animal"?
(A) Henri Fayol
(B) FrederickThylor
(C) Abraham lvlaslorv
(D) Frederick Herzberg
f 9. At which stage in group formation does
conflict and resistance arise?
(A) Forming
(B) Norming
(C) Storming
(D) Performing
20. A leadercan BEST bedescribed asonewho
(A) emerges from within the group
(,8) is appointed to a position of formal
authority
(C) organizes resources to meet the
objectives of rhe organization
(D) influences others to perform beyond
the actions dictated by formal
authority
21. The person who is elected at the warkplace
to represent union members at a local level is
the
(A) shop steward
(B) branch ofYicer
(C) executiv leader
(D) trade union leader
22 - T?re tearn member who is action-oriented and
enjoys challenges is BEST described as
(A) a shaper
(B) an evaluator
(C) a specialist
(D) a resource investigator
23. Which one of the following organizational
structures is a multinational corporation
MOST likely toadopt?
(A) Marrix
(B) Functional
(C) CeograPhical
(D) Product based
l5
t6
t7
t8
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2E
24. When the marketing manager advises the
production matrager on a new product, rvhat
type of authority is displayedbythe marketing
manager?
{A)
Line
(B) Staff
(C) Funaional
(D) Line and Staff
When Sonia Green, the Marketing Manager
ofSonia's Shoe Stores, sts new sales targets
and develops strategies to achieve them' she
is de.nonstraring the menagement function of
(A) Ieading
(B) planning
(C) conholling
(D) organizing
anything
receiving
ln Maslow's hierarcby of necds, in which
level of needs does 'OPen and honest
communication among employecs' belong?
tA)
Safety
(B) Esteem
(C) Self aczualization
(D) Social
the BCC Banking & Investment Company
isplaruring to computeriae some of its services
within the next six months. I{ow BEST
should management implemant this change?
(A) 'Leak' iniormation and await
feedback and train the remaining
employees.
(B) O{fer voluntary severance and train
the remainin g work force'
(C) Meet with key personoel and await
feedback pricr to implementation'
(D) Implementaredundancyprogramme
with immediate effect.
Christopher sought the legal advice of a
tnbunal because of an unfair dismissal at his
workplace. An L|NLIKELY decision of the
tribunal is that the emPloYec
(A) sues the emPloYer
(B) be reinstated in ttre same
job
(C) be reinstated in another
job
(D) receives compensation tbr the unfair
dismissal
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26. ln the communications Process!
which distracts the receiver from
the message is known as
(A) noise
(B) an cncoding
(C) a decoding
{Di
feedback
27. Upward communicatron occurs when
3{}
(A)
(B)
(c)
(D)
instructions are given to subordimtes
objectives are communicatcd to the
rank and file
employees are allowed to exPress
their views
members of staff coordinate tasks
within thcir deParlments
)
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3 I . \llhich one ofr.he following is NOT monitored
by u'orking capital management?
(A) Stock
(tl) Debtors
(C) Creditors
(Di Fixed assets
32. Which one of the following is m extemal
.lonll-term source of finrueing?
(A) Leasing
(B) Trade credit
(C) Share capital
(D) Hire purchase
33. \f/hich one of the following is NOT a financial
sfatemnt?
(A) Trial balance
(B) Balance sheet
(C) Cash flow statement
. (D) Profit md loss account
34. lf a corrpany is highly geared, ir means that a
high proportion of its finance is
(A) cash
(Bi loan
(Ci profit
(D) equity
35. Which one of the following is NOT an
investment appraisal technique'l
(A) Cost benefit .
(B) Paytrack period
(C) Net present value
(D) Average rate of rerurn
36. The balance sheet equation can be wrifien
as
(A) CA r- CL: C -+ L
(B) FA-CA:C+L
(C) CA(F+CL):C+L
(D) F-|(CA-CL):C+t-
37 - \Vhich one of the following sources of finance
is LEAST likety to be used as invesrment in a
new product development?
(A) Debentures
(B) Share issues
iC) Bank overdraft
(D) Bank loan
38. A main draw'back of leasing is that
(A) the asset is not owned b:r' the Iessee
(B) it is a binding contract with the lessor
(C) onl-v t}e short term cash flow pnsition
is improved
(D) a periodic payment is made over the
,
life of the agreement
3 9 . Sunshine Limited keeps records and accounts
of all of its financial transactions. Which one
ol'the follo*.ing groups is the IVIAIN user of
the fi nancial information?
( A ) Suppliers
(B) Employees
(C) (iovernment
(D) Marragement
40 . An increase in the provision lbr doubtfirl debts
u,ill rcsult in
(A) an increase in current assets
(B) an increase in crrrre.nt liabilities
(C) a credit adjusrment ro rhe income
{D)
statement
a debit adjustmcnt to the income
statement
41. Slraigbt-line depreciation is MOST suited to
an asset which
(A) is more efficient in the early years
(B) is more efficient in rlre later years
(C) provides th same quality of service
in all years
(D) needs frequenr repairs and
maintenance as it gets ol{er
.,
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42. Which of the following costs will appear in
the cost of sales of a retailer?
Tbe foliowing is an extract of a firm's balance
sheet as et 31112106.
EXTRACT
Opening Capital $200,000
Net Profit $100,000
Drarvings S 50.000
$3s0'0tr)
The return on capital invested is
(A) ttr,
43.
I.
II.
III.
v.
(A)
(B)
(c).
(D)
(A)
(B)
(c)
(D)
M&T Ltd has issued 50 000 sharcs at $2.00
EACH. the company's net profit after tax
is $212 000. At the end of the year the
market vaiue of the shares is $3.75.
The eamings per share ratio is
4OV6
Item.
1,5
refers to the following table
1'he closing cash balance is
(A) $ 2 000
(B) $26000
(c) $28 000
(D) $40ooo
Advertising
Carriage In
Purchases
Depreciation
I and II only
Iand III only
II and III only
iI and IV only
$4.75
s4.25
$2.75
s2.00
(B)
50% (c)
80o/o (D)
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Net cash inflow from operation $46 000
'laxation
pard $12 000
Par.rnent of frxed asset $19 000
Share issue $13 000