VY1 oB CY+Pe -z- a,etl Ps \AnrTf.

'Technological obsolescence' refers 7. A firm practises ethical behaviour when it

technology being
(A) delays paying its supplier in order
(A) outdated I to improve its liquidity position
(B) expensive (B) places qore emphasis on social
(C) inefficient responsibilities over profits
@) inappropriate (c) recalls a specific batch ofproducts
because of flaws in a few
(D) pays large salaries to its executives
A MA,IOR disadvantage of multi-national .during a redundancy exercise
corporations to the host country is

(A) increased taxation

lVhich ofthe following is NOT considered
(B) increase in imports
a criterion when measuring the size and
(C) repatriation of profits grovrth of a business?
(D) increased production iosts
(A) Laboir force
3. TVhich of the following is LEAST likely to (B) Capital layout
contribute to economies of scale? (C). Market share
(D) Capital sfiucture
(A) Finance
(B) Marketing a

(C) Tecbnology 9. The benefit which many lar.ge firms enjoy

(D) Competition over smaller firms is referred to as

(A) profitmocimization
4. In which ofthe following levels ofproduction (B) economies of scale
would bottling water fall? (C) economic weltnqss.
(D) goodwill of the firm
(A) Primary
(B) Tertiary
(C) Secondary 10. Barbago has signed many globalization
(D) Subsistence teaties. Which ofthe following are LIKELY
benefits of globalization to Barbago?
5. 'Trade liberalization'may be BEST
described as the L Increased emplolment
' tr. Improvements ir the balasce of
(A) free movement of capital , trade
(B) removal of trade barriers m. Improvements in the balance of
(C) unrestricted movement of goods palment '
CD) independence of trading partners ry. Increase in consumerst choices of
goods

6. Which of the following is NOT a decision- (A) I andtr only

making tool? (B) I and III only
(C) .II, trI and fV only
(A) Decision trees (D) I, II, m and fV
(B) Quantitative data
(C) Cost benefit analysis
CD) Critical path analysis

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o2133070/CAPE 2071
 \
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Which ofthe following is a featurb of 'cost 15. Conflict is present in all organizatioot \
push inflation'? because

(A) High level of wages (A) people come from different back-
(B) Lower cost ofproduction grounds
(C) An increase in the money supply (B) people sirnply do not know how to
get along
CD) Increased demand for goods and
(C)
services it is notpossible to have a conflict-
free environment
(D) somepeopls think ithelps because
t2. In a planned economy, the govenrment may all conficts are positive
seek to correct market failwes by

(A) advertising reform 16. Which of the following statements BEST

(B) offering welfare benefits describes a feature of a centralized organi-
(C) making ecbnomic decisions zatl'on?
(D) rationing the supply of goods
(A) - Managers delegate tasks to the
periphery.
13. As a decision-making tool, Critical Path (B) Employeesareempoweredtomake
Analysis is MOST useful when decisions.
(C) Autonomy is given to those at the
(A) there is only one activity - lower levels.
@) project activities are not clearly (D) Decision-making lies within the
defined upper levels of the organization.
(C) scheduling and controlling large
projects
(D) scheduling and controlling small t7. One barier to effective communication is
projects
(A) a clear message
(B) timely feedback
The Caribbean business environment is (C) poor communication channel
plagued by high rates of unemployment. (D) the use of acceptable jargon'

Which of the following BEST explains the

costs ofunemplolment to a country? 18. Which of the following is a non-financial
reward?
(A) Ahiehtyefficientworkforce
(B) An increase in foreign reseryes (A) Gain sharing
(C) Increased costs for trade unions (B) Job enrichment
(D) Reduced demand for goods and (C) Lump-sum bonus
services (D) Employees' stock ownership
plan

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0213301O/CAPE 2011
 :./
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/. -4-
19. Which ofthe following theorists is known as 24. Which of the following types of
the 'Father of Scientific Management'? communication is illustrated by the
grapevine?
(A) Elton Mayo
CB) Max Weber (A) Lateral
(C) Frederick Taylor
CB) Formal
(D) Douglas McGregor (C) Diagonal
(D) Informal
20. The florv of communication in a matrix
stucture reflects the interest of 25. Whic.h concept of the s5rstems approach
(A) classifies an otganization as a system
customers
(B) within another system?
authority figures
(C) management and customers
(A)
(D) the functional areas ofmanagement
Sperry
(B) Sub-system
(c) Open system
(D) Closed system
21. In the context of a private sector organiz.s-
tion, the term 'delayering'mean's

(A) flatter structures 26. Which of the following stuategies are NOT
CB) poor communication likely to be used to overcome resistance to
(C) less chance of promotion - change? j;?,

(D) more sophisticated managers

(A) Negotiation td agreement
(B) Participation and involvement
22. Which of the following is LEAST likely to (C) Education and cornmunication
be the objective of a performance appraisal (D) Vested interest and commifgmsal
system?

(A) To encourage and supportplanned 27. In order to fulfil a customer's order on

.changes within the time, Shalini has to rely on the services of
firm
(B) To consider the advancement of an emplolment 4gency to find three new
employees machine operators. A possible benefit, to
(C) To recopslize the future needs of Shalini, efuging this method of recruihent
employees is that
(D) To identify employees in tle.
organization who have potential (A) new ideas and practices can be
for'advancement brought into the business
(B) it is less costly than other methods
ofJgcnrihenl
23. The MAIN purpose of an organizational chart (C) a shorter induction period is
is to show the required for employees who are
not recruited internally
(A) location of its deparbnents (D) "greater cooperation among
(B) type of work to be carried out by internal applicants and those
employees offered the job shouldbe rbalized
(c) order in which the work should be
carried out
(D) lines of authority and levels of
hierarchy in an organization

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021330L0/CAPE 2011
 -5-
28. Which of the following leadership styles is 31. Which of the following BEST defines a
MOST suitable for an experienced and flex- debenture?
ible person?
(A) A bank loan with a fixed interest
(A) Autocratic rate
CB) Democratic (B) A long-term loan with a fixed
(C) Paternalistib interest rate
(D) Constitutional (C) A long-term loan with a variable
interest rate
(D) A short-term loan with principal
29. David Brown, a small restaurant operator, paid at maturity date
needs an experienced chef. He placed an
advertisement in the local newspaper and
received many applications. 32. The THREE main components of a cash
flow statement are
Which of the following is the MOST
appropriate sequence in the hiring proce- (A) operating bbtivities, investing
dure thatDavid Brown should follow? . activities, funds flow
(B) operating activities, financing
(A) Interviewing, skill-iesting, activities, issuing shares
selecting, appointing (C) issuing shares, funds flow, financing
(B) Skill-testing, interviewing, activities
selecting, appointing (D) operating activities, investinq,,
(C) Skill-testing, selecting, inter- . activities, Epancing activities
viewing, appointing
(D) Interviewing, selecting, skill-
testing, appointing 33. The method of investnent appraisal which
uses profit in its calculation is the'

30. A nonnally loyat and conscientious em- (A) paypackperiod

ployee of XYZ Limited faildd to comply (B) net present value
with a new work schedule, which was (C) average rate of reJum .

posted on the deparhent's bulletin board. (D) internal rate of return

He was subsequently reprimanded by the
Head Supervisor. Which of the following
MOST likely may have been the cause of 34. Which ofthe following are internal sources
his failure td comply? offinance for. a business?

I. An unclear message I. Retained profits

IL An ineffective medium II. Bank overdraft
m. The status of the sender n. - Sale of assets
(A) I and II only (+) Iandtronly
(B) I and III only (B) I and III only
(C) tr and Itr only (C) -tr and III only
(D) I,Ii and trI (D) I, III and III

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021330L0/CAPE 2011
 -6-
:
35. AIf ofthe foltowing sources offinance are Profitable firms have cash flow problems
long-termBXCEPT because

(A) gants (A) outstanding accounts receivables

(B) share issues are too high
(C) debentures (B) payments to trade suppliers are
(D) debt factoring delayed
(c) discounts are given for prompt
I

|ti .-- .'

'l palment
!
36. Which ofthe following qoncepts states that (D) shareholders demand proposed
t:
I'
;
similar items should be accorded similar dividgnds
accounting treatnents?
:.

(A) 41. The MAlN'objectiVe of cash flow statements

Entity
(B) to a business is to show the
Prudence
(C) Materialiff (A) cash inflow and cash outflow
(D) Consistency (B) cash in hand and cash oufrow
(C) . cash equivalents and cash inflow
37. Which of the following accounting concepts (D) cash in hand and cash equivalents
includes an unpaid bill in the profit and loss
t'
account?
In order to increase its level of working
(A) Accrual capital, a business should reduce the +
(B) Prudence
(c) Double entry L levels of stocls
(D) Going concern tr. amount ofprepayments
m. credit time given to debtors

Rock Steel Company is a small private (A) I and [I only

gompany trying to source long-term invest- (B) I and III only
ment funds to finance operations. Which of (C) tr andIII only
the frillowing would be the BEST source of (D) I, II and III
funding?
Item 43 refers to the followinltable which
(A) Share issue shows au extract fiom the books of PB's
(B) Owner's finance Ltd.
(C) Bank overdraft .:;

CD) Venture capital Net cash inflow from operation $ 46 000

Ta:<ation paid $ 12 000

39. The accounts for the New Line Corporation
Payment of fixed asset $ 19 000
are prepared on the basis that the business
is operating and is not likely to close down Share issue $ 13 000
or go into liquidity in the near future. This
action reflects the accounting concept of 43. The clobing cash balance is

(A) double entry (A) $ 2000

(B) going concern (B) $ 26 000
(C) accruals on assets (c) $ 28 000
(D) consolidating accounting (D) $ 40 000

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nt 1 ??n1 n/n A DE rnl 1
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44. The following table is an exfiact from the books ofXJ,s Ltd.

Sales $9000
Opening Stock $3200
Closing Stock $2400
Purchases $s600

The gross profit ratio is

(A) 2e %
(B) 36%
(c) 62%
(D) 71%

Item 45 Jefers to tlie following extact of Maria's cosmetics c'ashAccount.

DR CashAccount CR

$ $
Opening balance 800 Rent I 000
Sales 2400 Wages 1 200
Telephone 300
Closing balance 700
3 200
r-3200

45. - figures sbould be posted to the Trial Balance?

which of the following

(A) $ 3oo
(B) $ 7oo
(c) $ 8oo
(D) $1 ooo
l

fF YOU FIMSH BEFORE TIME IS CALLED, CrrF.cKyouR woRK ON TmS TEST.

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