,iltT---

nit f Paper I .f .rne ZOOS*:l

6.I

rlI

I

'fhe nrission statement of an organizationIIEST dcfines thc organization's

(A) tactrcal ohjectrres(B) srrategicob_ir:ctives{C) ogxrationalobje'r.:tives( D) specifrc and quantifiable objectives

Which ol'the f6lllrra'ing is LtrASl likely tocontribute to u'cononries of scale'?

(A ) FinanceiRi \larkcting(Ci Tcchnology(D) Compctition

ln ,rvhich of thc follorving levels ofprodr-rctionr"'or.rld bottling * ater tall-1

(A) Prirnary(ts) l.cniary((:) Sccondary(D) Subsistencc

A N4AJOII disadvantage of multi-nationalllrrporations to thc hosl countn is

(A) irrcrcascd taxation(B) irtcrease irl imporlsi(') repatriation of J:rofits(l)) in(:rc.rsedprodr-rclioncosts

Whrch of'thc lirllowing is N()T a critertonused to measure the grov"th and size of a

iinrr'.)

(A) Orrtput(lJ) Labour forcet(:I lvlarket share( D) Salary increase

The terrn limitcti liability in busincss rneansthat shareholders

{n ) do not tlisclosc inforlratir:n tooutsiders

have limited confol of managementof the brrsiness

are liable forall dcbts incurred by the

(B)

(c)business

(D) are not liable for the rlcbts t-rf thecr)r-npany beyond rhc valuc oltheirsharcs

7. A finn practises ethical behaviour rvhen rt

3.

(A)

(fl)

(c)

(I))

(A)iB)(c)(D)

(A)(B)(c){lr)

dclays Jraying its suppltcr in orrlcr toirnprove its liquidiry positron

places more emphasis on strcialresponsibil ities over pro fi ts

recalls a s;recitic batch ot procluctsbecause ol'flarvs in ir ILs'

pays large salaries to its cxecutivestluring a redundancv exercise

prtrvide ernplolrnenlobtar n nc\a, technr:logvtulfil srrcial responsibilityredr-rce overall operating costs

prot'it maximizationeconornicti of scalee{.:onomic rvellnessgood x,ill of thc firm

L I'irms ber:orne multinationals MATNLY to

/C'l

1a

9. The benelits u'hich many large lirrns enjoyovcr strallcr firms arc ref'errcd to as

906-4493 , 968-8427

t3t0. Which of the tbllowrng are bene fits ofglobalization to the host country?

i.tl.

III,

IV,

Increased enrployrttentInrpnrventents in balance oi' trade

Improvements in balancc o{'paymcnts

lncrease in consumers' choices ctlgouls

(Ai I only(B) ll and lll only(C) II. III aud lV only(D) l,lt.lll and lV

I'hc -()n-( ola' soli cirink company has bccn

ablc'to linanctr ncrv prrrduct tlcve:lopmcnt. In

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

'lhc introduction of thc USN,IL has providcdnumcrous opportunitics to (.laribbcan

Icrlitoncs including

I.

II.ru.lv.

(A)(B)(cl )

(D)

rcpaylrcnt of tbrcign debtremoval of trade barriersiiee movement of iabr-rur

liee rnovement o1' capital

I and II onlyI and IV onlyl, ll and lll onlyI, II III and lV

Caribbean countries are plagued with theproblenr ofskilled persons leaving their shores.

\\ftich oi'thc lollou'ing BEST iilustratcs abenelit ol'this'brain drain' to the Caribbean?

(A)(Bi(()

(D)

A reducrion in importsA retluction in training costA positive elltct on the balance ol'

par.Tnents

An increase in tradc amongneigltbounng le rri tories

14 BKF I'ashitxs Ltd rvishes to increase itssales ancl markel share. lt decides tounderLake u ne* nrarketing campaign. The

dcc:rsirrn trcc bclow shou.s the t$() options

availablc lo (he compan),.

t2

Whar is lhc probabilitv of succcss for( arnpaign I)'l

(/\ ) 0.1

(B) 0.2(c) 0.4(D) 0.6

;ffi:

906-4493, 968-842'lI

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The manager ol'Promotions Plus' believesin using all the time available to enhanceproductions wrthin the organization. .4s aresult hs tries to rcach intermcdiatesettlcments on cr]mpler issues rvithin theshortcst prrtsible time. \trr'trich of the fbllorvingstra:egics is he rising to manage conflict r+ithinthe crrganization?

{A) Smoothilg( Bl C'ornprornise(C) Collaboraiiorl( l)) Conliontation

A shop stcward is an ol'tfcial nrsnrber of

(A) a trade union(B) a credit unir:n(C') ancrrkers'council(D) an ernpl<l5crs' associaLirrn

The N{AI5l objectives nf conrinrrorrs staflappraisal are tcr

[. irnpnrl'e efllciencvIL identityu-ainrngnedsIII. identi$ areas of u'eakr,essIV. anrive at u,agc paytnent rales

(A) . il and lV ot.tly(ts) l. Il and IV onlv(C) l. lll and IV onl-v( I )) tI, ITI and IV orrlv

Which of the tbllo*'ing is a non-financialrerr,,ard?

(A) (iain sharing(D) Job enriclunent(C') I-r.rnrp-sumtrelnus( t) ) Ilnrployees stock orvnership plan.

One fcature cll thc patemalistic lcadershipstyle is that

(A)

(B)

(ct)

(D)

l-h* IVIAIN puqxrse olis !o show the

marlagers do wlrat lhcy thrnk is bcstfor the workers

rvorkers are only given lim itcdintbrmation ahout tlre trusinc-ss

workers are given in[irrmation abtiutthe business to allow ftrll sta{Tinvolvemcnt

managers ds:legate vrrtual l-v., al!authority and decision nrakingpo\\,efs

a.n 0rgalliratir)Ir:rl c.hart

{A)(B)

krcrticrn clf irs dcpartrneiltstypc of r,r,ork to be carried out b;'

E.lton Ma.voMax WeberFrctlerick TaylorDorrglas Mc(iregor

Employees are ernpo*,ered to makedecisions,

Decisicu-nrakirrg lies rvithin thcupJrr levels of tlre orgalization.

Aritor:on:f is given to rhose at thelorvcr levels.

Managers clulcgatc tasks to thepcriphery..

t7

cmployecs(C') order in rvhich the work should be

can'icd orrt(D) lincs of authority and levels o1"

hicrarchv in an organization

Which of the lbllou,ing theorists is kn.rrvll asthc 'F:lther ol Scientific Managernent'?

2l

'.,

(r\)(B)tc){D)

l8Which of the follorving stat.emcnts Bf:STdescribcs a teature ol- ccntralizedorganization?

(A)

(B)

(c)

(D)

AlAa"'JFfl;

C^RIBBEAN'NTERNANONAL COI.EGE

906-4493, 96A-a42?

23 t&?rich ofthe lirllou,ing is L[iAST likely to bethe objectives of an apprajsl systsm?

(A) 'lb encourage and suppon plannedchar:ges withing the titm

(B ) To consider the der.eiopment of.rhcindividual's career

((:) To recognise the tuturc needs of'theindrr"idual

(t)) Io identity errployees in rheorganization who have potentiaifor advancenrcnt

When entplol.ees are allovvcd to develop andcarry our plans rvitJr high levcls of cflirn- rhcvare applying Fayol's principlc ol'

i A ) initiatir.c{R) aurhoriry(C) discitrrline( D ) unity of dircction

Which of rVlaslow,'s hierarchl.of neerls wouldan organization be satistying if ir provides itsrvorkers u'ith pension plaoslt

{A)(B){C){D)

SocialSecuritr'Self-esteemPhr,siologicll

27. Ernployces in Company .A,are told to cometo work and jirllorv the inlitructions that arsgiven. Which leadership style is beingpractised?

(A) Directive( tsi Parcrnalisric(C) Laissez-Faire(D) Consritutional

.{l ',vhich level ol l\iaslow's hicrarchv ofneeds would 'open and honest c()mmuni.itinnamong cmployees' be applic.ablel)

/ (A) . Strcral( B.) Sat-ety-(C) Esteem(Dl Self-actualization

lhc 'systern approach' applres tsEST tonlanagenent because it

(A) cncouragcs all the othcr theories ofmanagem-ent

(ts) places ernphasis on tlrtr classic:alapproach

iC'1(D)

eurphasizes the humanistic approachsccs management is a r:oniinuorrs

flovr bet',r'ecn tunctrons ordepafirnents

A head rtttice rvanG the local buildins srrcietiesto clrange nrongage interest rates.

-Which of

tl rc lirlh twinc cortrmun ical.ion ne{w orks wrrultlbe ll{05-l suitable tbr senrJing rhis type ol-rresslge?

( ,\, Reporr( ts) Ielcphone((' ) Notice board( I) ) lVlcrrrrlrandum

28

1

ilri

21

29

25.

26 Which ol- tlre tirlkrr+.ingt\,|()S1' suitable fbr anllexiblc pcrson?

(4, r\utocratic(B) Dcmocratic(C) I)atcrnalistic( D) Constitutional

lcadcrship swles lsexperienced and

30

T

j 6A-&se'l%-,*

;6;%;:l^fitff;=,{i

'l

3t. Which of tbe following B€ST defines adebenture?

(A) .A bank loan '*.ith a frxed rnterest rate( B) A long-teml loan rvith a l-xed interest

(c)rate

A long-term loan u,itlr a variableinterest rate

(D) A shon-term loan with pri.ncipal pardat maturit_v dale

Working capital is oftcn dcscribed as the .lifeblood of a busincss'. Which of thc l'ollorvingoptions BL.S'I' describcs proper rnanagemetrtofworking capital?

(A) Increased stock lcvrrl(ts) lmproved cash [low, forecasts(C) Increased credrt to purchosers(D) Impror.ed research and developmcnt

A type ol'external finance w,hich ol'lersflexibitity and the ab'ility to access tuncls .overand abovc' bank balances is krrorvn as

(A) lcasrng(R) overdratt(C) rrade credit(D) standing order

Proiitablc firrns have cashllow problcmsbccause

(.A) outstanding accorutts rcccivables are

(ts)

(c)

(ll)

trxrhighpavments todelayed

discourrts arepu_\ment

shareholdersdivrdends

trade suppliers are

given for pr()mp(

demand proposed

35.

32 Which of the tbllorving areused to finance a businessl]

I. lssuin-g sharesIT. Bank overdraftIII. Retained profitslV. Sale and leaseback

intemal sources

(A)(B)(c)(D)

I and III onlyI and lV onlyIII and IV onlyI, III and .IV only

An example of an brangible asset is

(,A ) cash( rl ) debtors((l) gtxxl$ill( D) mr>tor vehicle

'l he 1'l IRLI main components of a cash llowslitlcment ilre

(r\) oJrcratirrg activitics. invcstingac t i r' i tics, f-unds tlow.

(tJ) ()l)L:ratrng activities. financingucrir,i ties. issuing shares

( (- ) rssuitrg sharcs. tunds t'l<rw., Iinanr-inEruclr vrtics

(l)) opurutln!: activrties, invcstingtct rvities, linancing activitics

36

31

3f,

:14

)

906-4493 , 968-8427

6

ltcm 38 ret'ers to rhc graphillustrates the net presentinvestmcnt proiecr-

Which of the follou ing accourrting conccptsincludes an unpard bill in the profit and lossacc0unt'-)

below rvhichvalues of an

.10

4t

e

7-

20 000

r0 000

5 00{}

(s o00)

Oiscount Rate {?ir)

The disc{)unt ratc :rt rvhich the I.R.R, occursls

(A) 5 o/o

(Bi lo 0.6

((r) l5'.'.r(D) t7 e4

Edu ard ,lorres decirled to slart a soleproprietoruhip in autourobilc r.cpairs. ln ordurfo be cornpctitivc hc $ ill har,c to invcst in thcnlust currerlt teclrnologlr. Which of thelirllon.inu rs rhe lv1( )S l nppr()prtat€ \rlrlrce (rl'flnance lbr Edward?

(A) Accrual(B) Prudcnce /i(:) llouble enlyaD) (ioing conccm

Rock Sreel (,ornpany is a snrall pri\,areconlpanv trying to s()urcc long_terminvestmerrt f-unds ro tinencc operattons.\A:hich ot-rhe follox'ing rKruld bc rhe IIHSTsource of funding?

(A) Sharc issr-tc(B) ()lvner financctC) Bank overdrai( D) Venture capiral

Philbcn }{ardu arc is finding ir diftictrh to nlccttheir slrort-terrn pa!'nlcnts- Thc firrt cannralrRge rhis situarron by r.rrilizrng all of tlrelirllow ing tochniqucs g.XCLp'I-

(A) increasingdebtordays( B ) irrcrea-sirrg credit ptrrchases(C) selling tnore on a cash basis( D ) entsring ovcrdralt ararrgcments rvith

tranks

ltr-rn 'llrclcrs lo thc fbll(ru'ig tablc rvhichsholvS an cxrr-acrt liol)r thu bcrols of pB's Ltcl.

Ncl infl crrr tionr operationTa.ration paid sl2 000Pavment of {-r-red asset

Share issue

The closing cash balancc is

(A) $ 2 00()tB) $ 26 000(cr) $ 2t3 O0o(D) $ 40 000

42-18

39

{A)(ll)(c)(D)

Bank IoanShare issrrcDcbcnturesRctaincd eamings

{3

905-4493 , 968-8421

44. A motor vehicle with a cost price of $20 000and a scrap value of $4 000 will be used in abusiness for 4 years. What is the yearlydepreciation of the motor vehicle if thestraight-line nrethod is used?

Item 45 refers to the follorviag lable whichshows an extract tiom the books of NorthStar Co. Ltd.

- - --l

$;I

(A)(B)(c)(D)

s4000s4 s00s.5 0{}0

s5 500

Sales

Opening stock

furdrases

Closing Stock

2,1 5U)9 000

r5 000

I 700

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

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

$