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nit f Paper I .f .rne ZOOS

*:l
'fhe nrission statement of an organization 6. The terrn limitcti liability in busincss rneans
IIEST dcfines thc organization's that shareholders
I

rl
I
(A) tactrcal ohjectrres {n ) do not tlisclosc inforlratir:n to
I
(B) srrategicob_ir:ctives outsiders
{C) ogxrationalobje'r.:tives (B) have limited confol of management
( D) specifrc and quantifiable objectives of the brrsiness
(c) are liable forall dcbts incurred by the
business
Which ol'the f6lllrra'ing is LtrASl likely to (D) are not liable for the rlcbts t-rf the
contribute to u'cononries of scale'? cr)r-npany beyond rhc valuc oltheir
sharcs
(A) Finance
iRi \larkcting
(Ci Tcchnology 7. A finn practises ethical behaviour rvhen rt
(D) Compctition
(A) dclays Jraying its suppltcr in orrlcr to
irnprove its liquidiry positron
3. ln ,rvhich of thc follorving levels ofprodr-rction (fl) places more emphasis on strcial
r"'or.rld bottling * ater tall-1 responsibil ities over pro fi ts
(c) recalls a s;recitic batch ot proclucts
(A) Prirnary because ol'flarvs in ir ILs'
(ts) l.cniary (I)) pays large salaries to its cxecutives
((:) Sccondary tluring a redundancv exercise
(D) Subsistencc

L I'irms ber:orne multinationals MATNLY to

A N4AJOII disadvantage of multi-national
/ llrrporations to thc hosl countn is (A) prtrvide ernplolrnenl
C'l obtar n nc\a, technr:logv
iB)
(A) irrcrcascd taxation (c) tulfil srrcial responsibility
(B) irtcrease irl imporls (D) redr-rce overall operating costs
a
1
i(') repatriation of J:rofits
(l)) in(:rc.rsedprodr-rclioncosts
9. The benelits u'hich many large lirrns enjoy
ovcr strallcr firms arc ref'errcd to as
Whrch of'thc lirllowing is N()T a criterton
used to measure the grov"th and size of a (A) prot'it maximization
iinrr'.) (B) econornicti of scale
(c) e{.:onomic rvellness
(A) Orrtput
{lr) good x,ill of thc firm
(lJ) Labour force
t(:I lvlarket share
( D) Salary increase
 906-4493 , 968-8427

t0. Which of the tbllowrng are bene fits of t3 Caribbean countries are plagued with the
globalization to the host country? problenr ofskilled persons leaving their shores.

\\ftich oi'thc lollou'ing BEST iilustratcs a

i. Increased enrployrttent benelit ol'this'brain drain' to the Caribbean?
tl. Inrpnrventents in balance oi' trade
III, Improvements in balancc o{' (A) A reducrion in imports
paymcnts (Bi A retluction in training cost
IV, lncrease in consumers' choices ctl (() A positive elltct on the balance ol'
gouls par.Tnents
(D) An increase in tradc among
(Ai I only neigltbounng le rri tories
(B) ll and lll only
(C) II. III aud lV only
(D) l,lt.lll and lV 14 BKF I'ashitxs Ltd rvishes to increase its
sales ancl markel share. lt decides to
underLake u ne* nrarketing campaign. The
I'hc -()n-( ola' soli cirink company has bccn dcc:rsirrn trcc bclow shou.s the t$() options
ablc'to linanctr ncrv prrrduct tlcve:lopmcnt. In availablc lo (he compan),.
rvhich ofthe follog.ing departnrcnts has the
compan). bcncti tcd fiorn cconorn i c's o t sca Ie'.)

(A) l:inance
(B) i\{arketing
(C) Purchasing
(D) Rcscarch and l)evcloplncnt

t2 'lhc introduction of thc USN,IL has providcd

numcrous opportunitics to (.laribbcan
Icrlitoncs including
Whar is lhc probabilitv of succcss for
I. rcpaylrcnt of tbrcign debt ( arnpaign I)'l
II. removal of trade barriers
ru. iiee movement of iabr-rur )
(/\ 0.1
lv. liee rnovement o1' capital (B) 0.2
(c) 0.4
(A) I and II only (D) 0.6
(B) I and IV only
(cl ) l, ll and lll only
(D) I, II III and lV
 I 906-4493, 968-842'l

l5 The manager ol'Promotions Plus' believes l9 One fcature cll thc patemalistic lcadership
in using all the time available to enhance style is that
productions wrthin the organization. .4s a
result hs tries to rcach intermcdiate (A) marlagers do wlrat lhcy thrnk is bcst
for the workers
settlcments on cr]mpler issues rvithin the
(B) rvorkers are only given lim itcd
shortcst prrtsible time. \trr'trich of the fbllorving
intbrmation ahout tlre trusinc-ss
stra:egics is he rising to manage conflict r+ithin
(ct) workers are given in[irrmation abtiut
the crrganization?
the business to allow ftrll sta{T
{A) Smoothilg involvemcnt
( Bl C'ornprornise (D) managers ds:legate vrrtual l-v., al!
(C) Collaboraiiorl authority and decision nraking
( l)) Conliontation po\\,efs

r6 A shop stcward is an ol'tfcial nrsnrber of 2t) l-h* IVIAIN puqxrse ol a.n 0rgalliratir)Ir:rl c.hart
is !o show the
(A) a trade union
(B) a credit unir:n {A) krcrticrn clf irs dcpartrneilts
(C') ancrrkers'council (B) typc of r,r,ork to be carried out b;'
(D) an ernpl<l5crs' associaLirrn cmployecs
(C') order in rvhich the work should be
can'icd orrt
t7 The N{AI5l objectives nf conrinrrorrs stafl (D) lincs of authority and levels o1"

appraisal are tcr hicrarchv in an organization

[. irnpnrl'e efllciencv
IL identityu-ainrngneds 2l Which of the lbllou,ing theorists is kn.rrvll as
III. identi$ areas of u'eakr,ess thc 'F:lther ol Scientific Managernent'?
IV. anrive at u,agc paytnent rales
(r\) E.lton Ma.vo
(A) . il and lV ot.tly (B) Max Weber
(ts) l. Il and IV onlv tc) Frctlerick Taylor
(C) l. lll and IV onl-v {D) Dorrglas Mc(iregor
( I )) tI, ITI and IV orrlv

'., Which of the follorving stat.emcnts Bf:ST

l8 Which of the tbllo*'ing is a non-financial describcs a teature ol- ccntralized
rerr,,ard? organization?

(A) (iain sharing (A) Employees are ernpo*,ered to make

(D) Job enriclunent decisions,
(C') I-r.rnrp-sumtrelnus (B) Decisicu-nrakirrg lies rvithin thc
( t) ) Ilnrployees stock orvnership plan. upJrr levels of tlre orgalization.
(c) Aritor:on:f is given to rhose at the
lorvcr levels.
(D) Managers clulcgatc tasks to the
pcriphery..

;ffi:
 AlAa
"'JFfl;
C^RIBBEAN'NTERNANONAL COI.EGE
906-4493, 96A-a42?

23 t&?rich ofthe lirllou,ing is

L[iAST likely to be 27. Ernployces in Company .A,are told to come
the objectives of an apprajsl systsm?
to work and jirllorv the inlitructions that ars
'lb given. Which leadership style is being
(A) encourage and suppon planned practised?
char:ges withing the titm
(B ) To consider the der.eiopment of.rhc (A) Directive
individual's career
((:)
(tsi Parcrnalisric
To recognise the tuturc needs of'the (C) Laissez-Faire
indrr"idual (D) Consritutional
(t)) Io identity errployees in rhe
1 organization who have potentiai
for advancenrcnt .{l
il 28 ',vhich level ol l\iaslow's hicrarchv of
ri needswould 'open and honest c()mmuni.itinn
among cmployees' be applic.ablel)
21 When entplol.ees are allovvcd to develop and
carry our plans rvitJr high levcls of cflirn- rhcv
/ (A) . Strcral
are applying Fayol's principlc ol'
(B.) Sat-ety-
(C) Esteem
iA ) initiatir.c (Dl Self-actualization
{R) aurhoriry
(C) discitrrline
(D ) unity of dircction 29 lhc 'systern approach' applres tsEST to
nlanagenent because it
25. Which of rVlaslow,'s hierarchl.of neerls would (A) cncouragcs all the othcr theories of
an organization be satistying if ir provides its
managem-ent
rvorkers u'ith pension plaoslt (ts) places ernphasis on tlrtr classic:al
approach
{A) Social
iC'1 eurphasizes the humanistic approach
(B) Securitr' (D) sccs management is a r:oniinuorrs
{C) Self-esteem
flovr bet',r'ecn tunctrons or
{D) Phr,siologicll
depafirnents

26 Which ol- tlre tirlkrr+.ing lcadcrship swles ls 30 A head rtttice rvanG the local buildins srrcieties
t\,|()S1' suitable fbr an experienced and to clrange -Which
nrongage interest rates. of
llexiblc pcrson?
lirlh twinc cortrmun ical.ion ne{w orks wrrultl
tl rc
be ll{05-l suitable tbr senrJing rhis type ol-
(4, r\utocratic rresslge?
(B) Dcmocratic
(C) I)atcrnalistic ( ,\, Reporr
( D) Constitutional ( ts) Ielcphone
((' ) Notice board
( I) ) lVlcrrrrlrandum
T

j 6A
-&se'l%-,*
{ ;6;%;:l^fitff;=,
i

3t. Which of tbe following B€ST defines a 35. Working capital is oftcn dcscribed as the .life
debenture? blood of a busincss'. Which of thc l'ollorving
'l options BL.S'I' describcs proper rnanagemetrt
(A) .A bank loan
'*.ith a frxed rnterest rate ofworking capital?
( B) A long-teml loan rvith a l-xed interest
rate (A) Increased stock lcvrrl
(c) A long-term loan u,itlr a variable (ts) lmproved cash [low, forecasts
interest rate (C) Increased credrt to purchosers
(D) A shon-term loan with pri.ncipal pard (D) Impror.ed research and developmcnt
at maturit_v dale

36 A type ol'external finance w,hich ol'lers

32 Which of the tbllorving are intemal sources flexibitity and the ab'ility to access tuncls .over
used to finance a businessl] and abovc' bank balances is krrorvn as

I. lssuin-g shares (A) lcasrng

IT. Bank overdraft (R) overdratt
III. Retained profits (C) rrade credit
lV. Sale and leaseback (D) standing order

(A) I and III only

(B) I and lV only 31 Proiitablc firrns have cashllow problcms
(c) III and IV only bccause
(D) I, III and .IV only
(.A) outstanding accorutts rcccivables are
trxrhigh
3f, An example of an brangible asset is (ts) pavments to trade suppliers are
delayed
(,A ) cash (c) discourrts are given for pr()mp(
( rl ) debtors pu_\ment
((l) gtxxl$ill (ll) shareholders demand proposed
( D) mr>tor vehicle divrdends

'l he 1'l IRLI main components

:14 of a cash llow
slitlcment ilre

(r\) oJrcratirrg activitics. invcsting

ac t i r' i tics, f-unds tlow.
(tJ) ()l)L:ratrng activities. financing
ucrir,i ties. issuing shares
( (- ) rssuitrg sharcs. tunds t'l<rw., Iinanr-inEr
uclr vrtics
(l)) opurutln!: activrties, invcsting
tct rvities, linancing activitics

)
 6

906-4493 , 968-8427

ltcm 38 ret'ers to rhc graph below rvhich .10 Which of the follou ing accourrting conccpts
illustrates the net present values of an includes an unpard bill in the profit and loss
investmcnt proiecr- acc0unt'-)

20 000
(A) Accrual
(B) Prudcnce /
i(:) llouble enly
aD) (ioing conccm

r0 000
4t Rock Sreel (,ornpany is a snrall pri\,are
conlpanv trying to s()urcc long_term
5 00{} investmerrt f-unds ro tinencc operattons.
e \A:hich ot-rhe follox'ing rKruld bc rhe IIHST
source of funding?
7-
(A) Sharc issr-tc
(s o00) (B) ()lvner financc
tC) Bank overdrai
( D) Venture capiral
Oiscount Rate {?ir)
42 Philbcn }{ardu arc is finding ir diftictrh to nlcct
-18 The disc{)unt ratc :rt rvhich the I.R.R, occurs their slrort-terrn pa!'nlcnts- Thc firrt can
ls nralrRge rhis situarron by r.rrilizrng all of tlre
lirllow ing tochniqucs g.XCLp'I-
(A) 5 o/o
(Bi lo 0.6
(A) increasingdebtordays
((r) l5'.'.r (B ) irrcrea-sirrg credit ptrrchases
(D) t7 e4 (C) selling tnore on a cash basis
(D ) entsring ovcrdralt ararrgcments rvith
tranks
39 Edu ard ,lorres decirled to slart a sole
proprietoruhip in autourobilc r.cpairs. ln ordur
fo be cornpctitivc hc $ ill har,c to invcst in thc ltr-rn 'llrclcrs lo thc fbll(ru'ig tablc rvhich
nlust currerlt teclrnologlr. Which of the sholvS an cxrr-acrtliol)r thu bcrols of pB's Ltcl.
lirllon.inu rs rhe lv1( )S l nppr()prtat€ \rlrlrce (rl'
flnance lbr Edward? Ncl infl crrr tionr operation

{A) Bank Ioan Ta.ration paid sl2 000

(ll) Share issrrc Pavment of {-r-red asset
(c) Dcbcntures
(D) Share issue
Rctaincd eamings

{3 The closing cash balancc is

(A) $ 2 00()
tB) $ 26 000
(cr) $ 2t3 O0o
(D) $ 40 000
 905-4493 , 968-8421

44. A motor vehicle with a cost price of $20 000 Item 45 refers to the follorviag lable which
and a scrap value of $4 000 will be used in a shows an extract tiom the books of North
business for 4 years. What is the yearly Star Co. Ltd.
depreciation of the motor vehicle if the - - --l
straight-line nrethod is used? $; I

Sales 2,15U)
(A) s4000 Opening stock 9 000
(B) s4 s00 furdrases r5 000
(c) s.50{}0
(D)
Closing Stock I 700
s5 500

45. The gross profir of North Star Co. Ltd is

(A) $ 250
(B) S 7 000
(c) $ 7 zsa
(D) Sl2 500