The Nature of Business
The purpose of a business plan is to
I. measure the performance of the business
II. attract financing for the business
III. provide direction for the business operations
(A) I and II only
(B) I and III only
(C) II and III only
(D) I, II and III
(C) II and III only
‘Capital as a factor of production’ refers to
(A) goods purchased for resale
(B) assets that are owned by the firm
(C) money that is used to purchase goods
(D) goods that are used to produce other goods
(B) assets that are owned by the firm
A system of organizing people, activities, information and resources involved in moving a product or service from supplier to customer can BEST be described as
(A) logistics
(B) airway bills
(C) intermodal transport
(D) supply chain operations
(D) supply chain operations
A system involving the exchange of goods depending on the ‘double coincidence of wants’ is known as
(A) barter
(B) money
(C) specialization
(D) equal exchang
(A) barter
Which of the following measures is intended to promote trade among CARICOM member states?
(A) Importation of low-cost goods from countries outside the region
(B) Production of similar goods and services in the various member states
(C) Reduction in import duties on regional goods
(D) Use of a variety of currencies by CARICOM countries
(C) Reduction in import duties on regional goods
A healthy labour force is desirable for all the following reasons EXCEPT
Less absenteeism at work
Increased production
Increased efficiency
Increased salaries for workers
Increased salaries for workers
Primary production is concerned with the
(A) distribution of goods
(B) provision of services
(C) provision of raw materials
(D) manufacture of goods
(C) provision of raw materials
The link in the distribution chain that BEST describes the breaking of bulk goods into smaller packages is called
(A) retailer
(B) consumer
(C) wholesaler
(D) manufacturer
(A) retailer
Which of the following is NOT a function of money?
(A) Indivisibility
(B) Store of value
(C) Measure of value
(D) Medium of exchange
(A) Indivisibility
Governments establish National Insurance Schemes in order to
(A) prevent devaluation of a nation's currency
(B) provide benefits to employees after retirement
(C) provide benefits to employees in the event of unforeseen circumstances
(D) protect employees from victimization at the workplace
(C) provide benefits to employees in the event of unforeseen circumstances
Which of the following factors is LEAST likely to affect the location of a business?
(A) Weather condition
(B) Availability of labour
(C) Suitable infrastructure
(D) Availability of raw material
(A) Weather condition
‘Capital as a factor of production’ refers to
(A) goods purchased for resale
(B) assets that are owned by the firm
(C) money that is used to purchase goods
(D) goods that are used to produce other goods
(D) goods that are used to produce other goods
Which of the following problems are likely to be encountered in distribution?
I. Spoilage of goods
II. Inadequate warehousing
III. Ineffective communication
(A) I and II only
(B) I and III only
(C) II and III only
(D) I, II and III
(D) I, II and III
Which of the following documents should be used to indicate to a business department that supplies of certain goods are needed?
A) Invoice
(B) Quotation
(C) Stock card
(D) Requisition order
(D) Requisition order
A plan for systematic saving and spending is referred to as
(A) trading
(B) investing
(C) financing
(D) budgeting
(D) budgeting
Which of the following is a regulatory issue for the entrepreneur?
(A) Using a credit card to transact business
(B) Offering hire purchase options to customers
(C) Paying national insurance to the government
(D) Advertising the business
(C) Paying national insurance to the government
Primary production is concerned with the
(A) distribution of goods
(B) provision of services
(C) provision of raw materials
(D) manufacture of goods
(C) provision of raw materials
A housewife buys meat from a MINI MART in her neighborhood. What type of distribution does this represent?
(A) A retail outlet
(B) A direct channel
(C) A single channel
(D) An indirect channel
(A) A retail outlet
Which of the following documents gives the name of the ship and full particulars of the shipment of goods?
(A) Bill of sale
(B) Airway bill
(C) Broker's bill
(D) Bill of lading
(D) Bill of lading
Which of the following is a function of a commercial bank?
(A) Refusal of deposits
(B) Barring of long-term financing
(C) Making the various currencies
(D) Lending of depositors’ funds
(D) Lending of depositors’ funds
John works hard as a farmer. His skills are referred to as:
Physical resource
Human resource
Renewable resource
Non-renewable resource
Human resource
Which of the following is NOT a primary industry?
(A) Mining
(B) Building
(C) Fishing
(D) Farming
(B) Building
Which of the following describes planning, implementation, forward and reserve flow of goods and services and related information between two destinations to satisfy customers’ requirement?
(A) Logistics
(B) Airway bill
(C) Globalization
(D) Multimodal transport
(A) Logistics
What is the name of the document used as the receipt of goods by an airline carrier and as a contract of carriage between the shipper and the carrier?
(A) Insurance
(B) Airway bill
(C) Bill of lading
(D) Import license
(B) Airway bill
A quota can BEST be described as a
(A) tariff on extraregional goods
(B) ban on the sale of foreign goods
(C) restriction on the quantity of goods imported
(D) licence to import unlimited foreign goods
(C) restriction on the quantity of goods imported