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CXC CAPE · · Management of Business

Free CXC CAPE Management of Business
Practice Paper

8 mixed-difficulty practice questions in the style of real CXC CAPE papers — answers, mark-scheme-style explanations, and the official exam structure all on one page.

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What the real CXC CAPE Management of Business paper looks like

Paper 01 (Multiple Choice)
45 multiple-choice questions, 1 mark each. About 1 hour 30 minutes. Tests knowledge across all three Modules of the Unit.
Paper 02 (Essay / Structured)
Extended essay and structured questions, one per Module. Around 2 hours 30 minutes. Tests developed argument, application and use of examples.
Paper 03 (Internal Assessment)
School-Based Assessment for school candidates (Paper 03/1) or an alternative written paper for private candidates (Paper 03/2). Coursework/research component worth a significant share of the Unit grade.
Total written exam time: ~4 hours across Paper 01 and Paper 02, plus the Internal Assessment.
Grading: Unit grades: I (highest) to VII (lowest), with a Grade Point Average and per-Module profile. Grades I–V are the pass range for most purposes.

Mini practice paper: 8 questions

Mixed-difficulty questions from across the Management of Business syllabus. Tap "Show answer" after each to check yourself.

Q1 · Difficulty 1/3

What does the E in PESTLE most commonly stand for alongside Environmental?

  1. External
  2. Ethical
  3. Employment
  4. Economic
Show answer & explanation
✓ Answer: D — Economic
Award 1 mark. The framework covers Political, Economic, Social, Technological, Legal and Environmental factors. Economic factors include growth, interest rates, exchange rates and inflation.
Q2 · Difficulty 1/3

What is management by objectives?

  1. Managing staff by monitoring their daily activity
  2. Setting objectives for the business as a whole each year
  3. A system in which managers and subordinates jointly agree objectives and review against them
  4. Ranking departments by how many objectives they achieve
Show answer & explanation
✓ Answer: C — A system in which managers and subordinates jointly agree objectives and review against them
Award 1 mark. Joint agreement is what supplies the motivation. Its weakness is that it favours what is easily measurable.
Q3 · Difficulty 1/3

What is a stakeholder?

  1. A member of the board of directors
  2. A part-owner holding shares in a company
  3. A person who has lent money to a business
  4. Any individual or group with an interest in a business's activities
Show answer & explanation
✓ Answer: D — Any individual or group with an interest in a business's activities
Award 1 mark. Shareholders and lenders are particular kinds of stakeholder. Employees, customers, suppliers, government and the community are others.
Q4 · Difficulty 1/3

What is corporate social responsibility?

  1. The obligation a business accepts towards society beyond legal requirements
  2. Complying fully with employment and environmental law
  3. Distributing profit to shareholders fairly
  4. Paying the taxes a business owes
Show answer & explanation
✓ Answer: A — The obligation a business accepts towards society beyond legal requirements
Award 1 mark. Legal compliance is the minimum standard rather than CSR. Assuming compliance is CSR is a common error.
Q5 · Difficulty 1/3

What does capital mean as a factor of production?

  1. The profit retained in the business
  2. The man-made resources used to produce further goods
  3. The money invested by the owners
  4. The total value of the business
Show answer & explanation
✓ Answer: B — The man-made resources used to produce further goods
Award 1 mark. Machinery, buildings, vehicles and tools are capital in this sense. Confusing it with money is among the commonest errors in this topic.
Q6 · Difficulty 1/3

What is a franchise?

  1. An arrangement in which a franchisee trades under the franchisor's brand and system for fees
  2. A company whose shares are traded publicly
  3. A business owned jointly by its employees
  4. A partnership between two established businesses
Show answer & explanation
✓ Answer: A — An arrangement in which a franchisee trades under the franchisor's brand and system for fees
Award 1 mark. The franchisee pays an initial fee and ongoing royalties. It allows the franchisor to expand using someone else's capital.
Q7 · Difficulty 1/3

What is the triple bottom line?

  1. Setting three objectives for every department
  2. Balancing the interests of owners, managers and employees
  3. Reporting profit before tax, after tax and retained
  4. Measuring performance against social and environmental outcomes as well as profit
Show answer & explanation
✓ Answer: D — Measuring performance against social and environmental outcomes as well as profit
Award 1 mark. It is summarised as people, planet and profit. Its difficulty is that social impact has no agreed method of calculation.
Q8 · Difficulty 1/3

What is perpetual succession?

  1. The passing of a business to the owner's heirs
  2. The continuous reinvestment of profit
  3. The appointment of directors for successive terms
  4. The company continues to exist despite changes in ownership
Show answer & explanation
✓ Answer: D — The company continues to exist despite changes in ownership
Award 1 mark. It follows from separate legal personality. A sole trader's business, by contrast, ends in law on the owner's death.
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CXC CAPE Management of Business FAQ

What does the CXC CAPE Management of Business exam look like?
The CXC CAPE Management of Business exam is structured across 3 components. Paper 01 (Multiple Choice): 45 multiple-choice questions, 1 mark each. About 1 hour 30 minutes. Tests knowledge across all three Modules of the Unit. Paper 02 (Essay / Structured): Extended essay and structured questions, one per Module. Around 2 hours 30 minutes. Tests developed argument, application and use of examples. Paper 03 (Internal Assessment): School-Based Assessment for school candidates (Paper 03/1) or an alternative written paper for private candidates (Paper 03/2). Coursework/research component worth a significant share of the Unit grade. Total written exam time: ~4 hours across Paper 01 and Paper 02, plus the Internal Assessment.
Can I download a free CXC CAPE Management of Business past paper?
Real CXC CAPE past papers are published directly by CXC CAPE on their official website. Kramizo doesn't redistribute copyrighted past papers, but we do generate free AI-written practice papers in the exact same style — same command words, same difficulty tier, same mark conventions. Use this practice paper as warm-up, then time yourself on official past papers before exam day.
How is CXC CAPE Management of Business graded?
Unit grades: I (highest) to VII (lowest), with a Grade Point Average and per-Module profile. Grades I–V are the pass range for most purposes. Kramizo's practice questions are tagged with difficulty 1-3 mapping roughly to the lower, middle, and top grade boundaries you'll encounter in the real exam.