-2-

A system. where production is organised so

that different operations can be carried out,
one after the other in a continuous sequence
is known as
(A)
(B)
(C)

(I
2.

job
flow
batch
project

5.

6.

Which ofthe following is NOT a dimensior.

of quality?'
{A)
(8)
(C)

Serviceability
Aesthetics
Conformance

CD)

Integration

Benchmarking encourages

Which of the following formulas represent

(A)
(B)

innovation
creativity

the measurement of labour productivity?

(C)

quick improvement

(D)

low prices

Number of hOllrs actually worked

(A)

(B)

Total possible hours pet day

7.

Output
Number of employees (per period)
Output

(C)

Capital Employed

Which of the followingBEST

features of batch production?
(A)

Regular demand, highly skilled

workforce, variation in product

(B)

Regular demand, some variation in

product,
semi or unskilled
workforce.
High steady demand, standardization,
semi or unskilled

Output
(D)

. Labour

+ materials

(C)

+ capital

describes the

workforce
(D)
3.

Which of the following factors is LEAST

likely to affect the location of a large furniture
retail outlet?
8 ..
(A)
(B)
(e)
(D)

4.

Cost of'land
Availability oflabour
Availability of raw materials
Quality ofthe local infrastructure

Mr. Joe produces hand carved jewellery.

Which type of production layout is BEST
suited for his business?
(A)
(B)
(C)
(D)

A type of costing which focuses only 011

variable costs and ignores fixed cost is known

Highsteady demand, variation in

product, highly skilled workforce

Process
Fixed-Position
Product
Cellular Position

as
9.

CA)
(B)
(C)

(D)

marginal Costing
standard costing
full costing
total costing

The layout of a workplace is very imporran:

Which of the following is an example of ~
Product Layout?
(A)
(B)
(C)
(0)

Print shop
Car assembly
Seamsrrees
Hospital ward

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0223301 O/SPEC 2007

-31 o.

Items 13 ~ 14 refer to the following table.

Mr Ellie's production layout is one where the

machines are arranged according to the
sequence of steps in the production of his
product. Which facility layout is he using'?

-~r

Activity

Fixed Position

(C)

Cellular
Process

(D)

II.

Product

Direct Labour

10.0.,00.0.units each at $2 EACH

Fixed Costs

200.,00.0.

f Direct Materials

30.0.,000

Dijo's,a manufacturer of video cameras,

recently replaced their 10em camera with a
4cm one. In which of the following forms of
product design did they engage?

13.

Thecontribution

to fixed costs is

(B)

$20.0,0.0.0.
$30.0,0.0.0

Integration

(C)

$50.0.,0.0.0.
$70.0.,000.

(C)

Miniaturization
Designing

(D)

(D)

Modularization

(A)

(8)

(A)

14,
12

. 1,0.00.,0.0.0

Sales Revenue
(A)
(B)

Amount

(A)

Work study is often viewed with suspicion by

the workforce because it is the
i

A)

iB

:C i
Q!

The profit is

(B)
(C)
(D)

means to increase individual output.

basis of disincentive to pay schemes.
main deciding factor in downsizing ..
means to eliminate specialist task on

$Jo.o., 00.0.
$20.0.,0.00
$30.0.,000
$400.,000

Item 15 refers to the following diagram of

the Product Life Cycle.

the job.

15.

]1] the diagram, at which point should a firm

decide to extend the market for its product?

(A)

(8)

(C)
(D)

III
IV

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- 4-

16.

"If we. mass produce,

sell cheaply and

distribute intensi vely, we will be profitable."

21.

17.

18.

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

Selling
Product
Marketing

Production

22.

Which of the following isNOT acriteria used

to test the effectiveness of segmentation?
(A)
(B)
(C)

Realizability
Snstainability
Identifiability

(D)

Measurability

A product that is difficult to find

,A product that is sold below cost
A manager who has no experience

(D)

A product that has no value

consumers

23.

III.

IV.

Delphi technique

(A)
(8)
(C)

I; Hand ill only

H, lJIand IV only
1', n and IV only

(D)

IU only

Vidal is thinking about producing cricket gear.

He was advised to conduct primary research.

Which of the foHClwing.instruments would be

MOS'Tappropriate'?

to

(B)

A manufacturing company decides to aim its

promotion at the final customer rather than
at intermediaries. This strategy is known as

(B)

pull promotion
push promotion

(C)

direct.promotion

(D)

customerpromorlon

(A)

20.

promotion?

(A)
(B)
(C)

(C)
(D)

24,

Which group BESTexplains 'belowthe line'

To make aware

Surveys
Observation
Tradejouruals

(A)
19.

To inform
To coerce
To persuade

Primary data is collected using which of the

following techniques?
I.
II.

Which of the following may be used to

describe the term 'Loss Leader'?
(A)
(B)
(C)

is NOT an objective

oJ promotion?

Which of the following business concepts

does the above statement reflect?
(A)
(B)
(G)
(D)

Which of'thefollowing

fntemet
Questionnaire
Desk research
Library research

At the introductory stage of the PLC, the

promotion strategy MOST LIKELY to be
employed would be the use of
(A)

reminder advertising

'8)'.
(

minimal advertising

(C)

informative.advertising
brand differenti ation

(D)

Advertising, Pubicity and Personal

Selling
P.ublicity, Sales Promotion
and
Personal Selling
Sales Promotion, Personal Selling and
Advertising

(D)

Personal Selling, Advertising

Sales Promotion

and

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02233010/SPEC2007

-525.

Which of the following reasons wouldjustify

the need to develop new products'?
L
Il,
III..
IV.

Be more competitive
To lower prices
Replace obsolete products
Change in consumer taste

(A)
(B)
(C)

I, ITand III only

1, n and IV only
I, III and IV only
IT,III and IV only

(D)

Items 29- 3'0 refer to the following diagram.

29.
26.

To price his product, Paul decided to add 25%

of the cost price to get his selling price. This

(A)
(B)

strategy is known as
(A)
(B)

cost-plus

(e)
(D)

perceived Value
competition pricing

A product has 3 dimensions or layers. Which

layer is represented by the shaded region C?

(C)
(D)

Augmented

zoin zrar e

,-->,-,

y.

30.

The characteristics of RegIon B include

(A)
warranty, quality, function
(S)
features, style.packaging
(C)sry1e,
image, preservatives
(D)
delivery, guarantee, after-service

Items 2-7- 28 refer to the following diagram.

31.

E-Commerce is best defined as

(A)
(B)
(C)

The diagram illustrates

fad P.L.C
typical P.L.C
leap-frog p.L.e
stair-cased p.L.e

IAl

:B\

- '.\.:::

Cote
Formal
Tangible

:1; izht

be the reason for such a behaviour

(D)

32.

using a skybox
selling on the internet
buying on the internet
advertising on the internet

Abeuefit of entrepreneurial activity to

Caribbean economies is
(A)
(B}

(C)
(D)

increase
increase
increase
increase

in GD. P.
in imports
in Government.subsidies
in foreign exchange rate

:--L;h;;rlevels of promotion
~~c5 found for the product
;_~c:..:c:i.:min level of competition
:-;.:::.:.:'t:(111 in the price oftheproduct

'< ~""

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. -.-- -

-633.

Which of the following is NOT required by a

new business when applying for a loan?

38.

An artiste who runs his own small business.

selling his paintings on Caribbean landscapes.

is best advised to seek which legal protection')

(A)
(B)

(C)
(D)

34.

Reason for the Loan

Financial records
Some form of security
Description of the business

An

(A)
{C)

Patent
Copyright
Trademark

(D)

Insurance

(B)

Which one of the following is NOT an

example of an entrepreneurial business?

Hems 39 - 41 are based on the following

case.
(A)
(B)
(C)
CD)

35.

Variety Store
Laundry Mart
Fast Food Outlet
Soft drink Manufacturer

An effective way to approach a new small

business venture is to create a unique product
01' service.
Another approach is to adapt
something that is currently on the market or
extend the .offering into an area where it is
not currently available.

A business plan can be defined as a document

which
39.
(A)
(8)

specifies the business details

identifies the level of profitability of

(C)

thebusiness
.specifies how long the business has

(D)

been in operation
identifies the characteristics

(A)
(B)

of the

(C)

business

36.

Which of the following is NOT an example

of assistance given to small firms?
{A)
(B)
(C)
(0)

37.

(D)

40.

Social
Financial
Technical
Educational

Which one of rhe following methods tall be.

used by Mary, a small business owner, to
improve her relationship withemployees?

(8)

(C)
(D)

Have family days

Improveprofitability
Reduce overtime hours
Reducing cost of production

outsourcing
market analysis
niche marketing
product deve lopment

When an entrepreneur

sets up a restaurant,
clothing store or similar outletsin areas that
have an abundance of these stores. The
entrepreneur
is identifying
business
opportunities via
(A)

new-old approach

(B)
(C)

0J d

(D)

41.

(A)

When an entrepreneur identifies a business

opportunity in an area that is not being filled
by competitors, it is best. refered to as

product approach

new product approach

niche marketing approach

To determine whether sufficient demand exi-:

in a new market, an entrepreneur shou.;

engage in
(A)
(8)

sales prom orion

market research

(C)

costing evaluation

(D)

forecasting of sales

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0223301O/SPEC2007

-7Iterns 42 - 44 refer to the following scenario.

Mr. Ram has recently completed a short course in chinese cooking.

Enthusiastic about his newly

acquired skill, he decides to open a small chinese restaurant. However, Mr Ram has no prior experience
in running a business and has very nttlefinances available.

42.

Which of the following Characteristics of an

entrepreneur is MOST evident in the above
scanario?

44.

Mr Ram would need to develop a projected

funds flow statement in order to identify
(A)

(A)
(B)
(C)

(D)
43..

High energy level

Tolerance for arnbigulty
Internal locus of control
.Awareness of passing time

profitability of the business

of working capital needed
amount of raw materials
to be
purchased.
Whether the business is a viable
option

(D} levels
(C)

CD)

Whichof'the following documents wouldMr

Ram most likely need-to present to a
commercial 'bank when seeking finance?
(A)
(B)

(C)

(D)

Business Plan
Organisatioaal Chart
,Artioles of Association

Memorandum of'Asseeiatio

Item 45 relates to the following information

(iii)

(i)

loan guarantee
program

business training and

advice
agencies
that assist small business

Governmental

(li)
leasing arrangement>"

45.

(iv)
____ marketing support

A lack of collateral has been identified as the

major constraint of a small business obtaining

finance'. Whichofthe following is a possible
solution?
(A)

(B)
(C)

CD)

IT'r

(i)
(it)

(iii)
(iv)

oi fI:.;ISHBEFORETIMEISCALLED,CHECKYOURWORKONTffiSTEST.
_, - - - ,I,