Free CXC CSEC Principles of Business
Practice Paper

The number of subordinates who report directly to one manager is known as the:

1. Line of authority
2. Organisational chart
3. Chain of command
4. Span of control

Which of the following BEST describes the function of management?

1. Hiring employees and paying wages
2. Planning, organising, leading and controlling resources to achieve goals
3. Producing goods and services for consumers
4. Buying raw materials from suppliers

Laws and organisations that protect buyers against unsafe goods, false claims and unfair trading provide:

1. Consumer protection
2. Limited liability
3. Economies of scale
4. Job production

Which institution is responsible for issuing a country's currency and regulating its commercial banks?

1. A building society
2. A hire-purchase company
3. The central bank
4. A credit union

A small bakery in Port of Spain needs $50,000 to purchase new ovens. The owner wants to maintain full control of the business and avoid sharing profits. Which source of finance would be MOST appropriate?

1. Selling debentures
2. Issuing ordinary shares
3. Bank loan
4. Venture capital

A sugar processing factory in Guyana has grouped its workers into departments based on their functions: Production, Marketing, Finance, and Human Resources. This method of grouping is called:

1. Departmentalisation by territory
2. Departmentalisation by customer
3. Departmentalisation by product
4. Departmentalisation by function

Which of the following is an example of capital as a factor of production?

1. A bauxite miner in Guyana
2. A fishing boat used by a Barbadian fisherman
3. The Caribbean Sea used for fishing
4. The entrepreneurial skills of a business owner

A Caribbean firm that extracts bauxite from the earth is engaged in which level of production?

1. Tertiary production
2. Quaternary production
3. Primary production
4. Secondary production